UltraTech Cement buys JP group plants for Rs.16,500 crore

Mumbai, Feb 28 (IANS) Aditya Birla-led UltraTech Cement on Sunday announced acquisition of Jaiprakash Associates Ltd’s cement plants, with total capacity of 22.4 million tons per annum (mtpa), for Rs.16,500 crore (about $2.5 billion).

“UltraTech Cement has today (Sunday) entered into a binding MoU with Jaiprakash Associates for the acquisition of its identified cement plants having total cement capacity of 22.4 mtpa (including a 4 mtpa plant under implementation) situated in Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand, Andhra Pradesh and Karnataka,” it said in a statement here.

“The parties have agreed to an enterprise value of Rs.16,500 crores.

“The assets will give the company access to the newer markets of Satna, UP East, Himachal Pradesh and coastal Andhra where it does not have a presence as of now. Upon consummation of the proposed transaction, the company’s cement capacity will stand augmented to 90.7 mtpa (current 68.3 mtpa),” it added.

It was unclear whether this agreement includes two cement plants of Jaiprakash Associates, the purchase of which were cancelled last week by UltraTech owing to lack of necessary approvals.

UltraTech had on Friday said it was calling off that deal with Jaiprakash Associates, which has been selling its assets in a bid to reduce debt and improve its balance sheet.

Leave a Reply

Please enter your comment!

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of www.mangalorean.com or any employee thereof. www.mangalorean.com is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.  

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of www.mangalorean.com to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at  info@mangalorean.com. Lets work together to keep the comments clean and worthful, thereby make a difference in the community.

Please enter your name here