CRH looks to India for acquisition
Ireland-based materials group CRH has entered negotiations that may lead to it buying an equity stake in Jaypee Cement Corporation’s Gujarat cement business.
The operation under consideration consists of a 3.6 million tonne clinker plant at Kutch, in western Gujarat, with 2.4 million tonnes of cement grinding capacity and a further grinding plant in eastern Gujarat with capacity to produce 2.4 million tonnes per annum.
The completion of any transaction would be subject to satisfactory due diligence, the approval of the respective boards of directors and the granting of the required regulatory approvals.
The Jaypee Group was founded in 1979 and has business interests in engineering and construction, power, cement, real estate, hospitality, expressways, sports and education. Jaypee is the third largest cement producer in India. It has a market capitalisation in excess of INR166.4bn (£1.94bn) and turnover of more than INR138.3bn (£1.6bn).
CRH entered the Indian market in 2008 through a joint-venture with My Home Industries Limited, a cement manufacturer in the south India state of Andhra Pradesh.
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This article was published on 08/08/2012 (last updated on 08/08/2012).