UltraTech agrees to buy JP Associates' cement plants for nearly Rs 16,000 crore
UltraTech Cement, an Aditya Birla Group company, has agreed to acquire Jaiprakash Associates' cement plants of 21.2 million tonnes per annum (MTPA) capacity at an enterprise value of Rs 16,189 crore.
UltraTech Cement has approved a scheme of arrangement between Jaiprakash Associates, Jaypee Cement Corporation and their respective shareholders and creditors for the acquisition of cement plants.
“The proposed transaction is essentially a 'geographic market expansion' which will lead to UltraTech’s entry into growing markets of India, such as the Satna cluster in Uttar Pradesh (East) and Madhya Pradesh (East), Himachal Pradesh, Uttarakhand and coastal Andhra Pradesh,” UltraTech Cement said in a statement on Monday.
Upon consummation, the company’s cement capacity will stand augmented to 91.1 MTPA including its overseas operations, it noted.