Asia / Oceania
UltraTech, Lafarge eye Jaiprakash cement units
Jun, 19 2012
(India) -- Two cement companies, Aditya Birla Group and Lafarge, have shown an interest in buying Jaiprakash Associates cement units in two states, worth up to about $1.6 billion.
Swiss cement maker Holcim, which has stakes in two Indian companies ACC Ltd and Ambuja Cements Ltd, was also believed to be in the race.
It has been reported that officials from Aditya Birla Group and Lafarge have completed preliminary talks with Jaiprakash and final bids are expected shortly.
Jaiprakash has spun off its cement units in the states of Gujarat and Andhra Pradesh into a separate company, Jaypee Cement, which has a combined capacity of 9.8 million tones.
The cement business could be worth about 90 billion rupees, based on an estimated cost of $160 a tonne for a greenfield plant.
Officials at Aditya Birla Group and Lafarge declined to comment. A spokesman for Jaiprakash Associates was not immediately available for comment.
By: Rashmi Kalia (ARI-C NEWS)
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