UltraTech cement buys Jaiprakash Associates' cement plants

Aditya Birla Group’s UltraTech Cement said that it has signed a binding memorandum of understanding (MoU) to buy Jaiprakash Associates Ltd's cement plants with a capacity of 18.4 million tonnes per annum (mtpa), for an enterprise value of Rs 16,500 crore. The agreement includes a 4 mtpa plant under implementation at a cost of Rs 470 crore and factories in Madhya Pradesh, Uttar Pradesh, Himachal, Uttarakhand, Andhra Pradesh and Karnataka. The cement capacity of Jaypee is based in Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand, Andhra Pradesh and Karnataka. "The assets will give the company access to newer markets of MP, Uttar Pradesh East, Himachal Pradesh and coastal Andhra where it does not have a presence as of now," Ultra-Tech said. On the other hand, Jaiprakash said it "has taken these steps to effectively address the subject of debt reduction". Lastly, UltraTech and Jaiprakash said the transaction was subject to definitive agreements and regulatory approvals.