People familiar with the matter said billionaire Gautam Adani’s group is in advanced talks with infrastructure-focused Jaiprakash Group to buy its cement business for around Rs 50 billion ($606 million).
The deal includes a cement grinding unit and other small assets of Jaiprakash Power Ventures Ltd and Jaiprakash Associates Ltd, the two people said, asking not to be identified as the information is private.
The acquisition will be done by one of the cement units recently acquired by Asia’s richest man, the people said, an announcement expected earlier this week.
People said that although the discussion is progressing, they may be delayed or separated. Indian news channel ET Now reported the deal without disclosing any value.
If completed, the acquisition will help cement Adani Group’s new dominance in the cement sector when it bought Ambuja Cements Ltd and ACC Ltd from Switzerland’s Holcim Ltd in May and India’s second largest cement maker. became a company. Installed production capacity of 67.5 million tons annually.
Adani Group representatives declined to comment. Representatives of Jaiprakash Associates were not immediately available for comment.
The cement grinding facility has a capacity of 2 million tonnes annually. This began working in nigri of central indian state of madhya pradesh in october,2014.
Jaiprakash Associates, the group’s flagship, rose up to 13 per cent during trading in Mumbai on Monday, before posting some gains. According to data compiled by Bloomberg show, Jaiprakash Power Ventures earlier advanced up to 3.7 percent.
According to a filing to the stock exchange on Monday, the board of Jaiprakash Associates has decided to sell the company’s “critical” cement business to help lower debt.
Separately, Jaiprakash Power Ventures said its board is looking to sell the Nigri Cement grinding unit as well as other non-core assets, without naming any potential buyer.
Adani Group last month said it plans to increase its cement manufacturing capacity to 140 million tonnes in five years inject 200 billion in its newly acquired cement business.
In collaboration with Ashutosh Joshi.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)