UltraTech Limited has agreed to acquire Jaypee Group’s 22.4 million tonnes of cement capacity assets for Rs.16,500 crore, making it the largest deal in the Indian cement sector.
Kumar Mangalam Birla’s cement flagship firm entered into a binding agreement with Jaiprakash Associates Ltd., for the acquisition of its identified cement plants having a total cement capacity of 22.4 mtpa and situated in Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand, Andhra Pradesh and Karnataka. As per the agreement these plants have been valued at Rs.16, 500 crore, according to a BSE filing. A number of foreign and Indian companies were in the race to acquire these plants. The deal will also include a four mpta plant under implementation at a cost of Rs.470 crore, according to the filing. The acquired assets will give UltraTech access to the newer markets in Satna, UP East, Himachal Pradesh and Coastal Andhra.