The Aditya Birla group’s Ultratech Cement Ltd’s Rs16,189 crore acquisition of the cement business of Jaiprakash Associates Ltd is on track and expected to be completed soon.
On completion, the purchase will increase UltraTech’s cement capacity by almost a third to 90.7 million tonnes per annum. The deal will give the company access to the markets of Madhya Pradesh, Uttar Pradesh East, Himachal Pradesh and coastal Andhra Pradesh, where it does not have a presence.
UltraTech in July last year said it will acquire Jaiprakash Associates’ cement plants, with a total capacity of 21.2 million tonnes per annum, in one of the largest deals in the cement sector in India. Both companies are looking to complete the merger by July, which is within the estimated time frame.
In March, Jaiprakash Associates received the National Company Law Tribunal (NCLT)’s approval for transfer of its cement plants to UltraTech Cement. The deal also received the Competition Commission of India (CCI)’s approval in August and shareholders’ nod in October.
The cement sector in India has witnessed several large deals in the past year, signalling consolidation in the space. Significantly, the sector has also seen rising interest from global private equity funds and strategic investors.
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