UltraTech Cement Ltd’s board has approved the acquisition of Jaiprakash Associates Ltd’s (JAL) cement units in Madhya Pradesh for an enterprise value of Rs 5,400 crore.
With this acquisition, the company’s cement capacity in India will rise to about 65 MTPA from 60 MTPA, and with projects underway, it will increase to about 71 MTPA by 2016, the company said in a statement.
The Aditya Birla Group company has acquired JAL’s cement plant with clinker capacity of 2.1 MTPA and cement grinding capacity of 2.6 MTPA at Bela, and a cement plant with clinker capacity of 3.1 MTPA and cement grinding capacity of 2.3 MTPA at Sidhi.
It also acquired 180 MW TPP of which 25 MW is situated at Bela and 155 MW at Sidhi.
The transaction is subject to customary due diligence, definitive agreements and regulatory approvals.