UltraTech Cement Ltd, part of the Aditya Birla conglomerate, said that it had agreed to buy Jaiprakash Associates Ltd’s cement plants for an enterprise value of Rs. 16,500 crore. The company had signed a memorandum of understanding (MoU)
with Jaiprakash to acquire plants whose capacity totalled 22 million tonnes a year, making it the largest deal in the Indian cement sector.
The agreement will increase India’s biggest cement maker’s installed capacity by one-third to 90.7 million tonnes annually from the current 68.3 mtpa, and provide infrastructure firm Jaiprakash with much-needed relief to pare its debts.
The deal will also include a four mpta plant under implementation at a cost of Rs.470 crore. The acquired assets will give UltraTech access to the newer markets in Satna, UP East, Himachal Pradesh and Coastal Andhra. UltraTech said the
transaction was subject to definitive agreements and regulatory approvals.
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