New Delhi : Aditya Birla Group’s flagship Ultratech Cement is at an advanced stage of negotiation with Jaypee Cement Corporation to acquire its 51 per cent stake in the 5 mtpa Gujarat facility for about Rs 4,000 crore.
“Talks are on at advanced stages and the deal is likely to happen in next 10-15 days. Ultratech will buy Jaypee Cement Corporation’s 51 per cent stake in Gujarat plant, which has an annual capacity of five million tonnes” a source told PTI.
“The deal is likely to be valued at around Rs 4,000 crore,” he said. Both the firms involved in the negotiation, however, declined to comment.
The Jaypee Group, having interests in areas such as real estate, cement and hospitality, is the country’s third largest cement maker with an installed capacity of 33.5 mtpa.
Though Jaiprakash Associates, the flagship company of the Group, holds the majority of the cement business, however, operations in Gujarat and Andhra Pradesh having a total capacity of 9.8 mtpa, are under the aegis of Jaypee Cement Corporation. This was hived off for monetising the asset.
Aditya Birla Group, the country’s largest cement maker with 54 mtpa capacity, runs cement business through Ultratech Cement and plans to increase its capacity by another 10 mtpa by 2015.