The board of Sagar Cements Limited has approved the acquisition of a 100% stake in BMM Cements Limited. The acquisition of the company, which has a 1 million tpa cement plant in Andhra Pradesh, brings Sagar Cements’ total capacity to more than 3 million t of cement. As well as the cement plant, BMM has limestone reserves of 155 million t and a 25 MW captive power plant.
“The proposed acquisition of BMM Cements comes at an opportune time wherein the demand environment and pricing in our region of operations looks encouraging. The two companies are wholly complementary geographically with considerable potential for synergies,” the company said in a statement.
Sagar Cements has a plant in Matampally, Telangana and recently exited a joint venture with French cement company Vicat. BMM reportedly has an enterprise value of Rs.540 crore.
Edited from various sources by Katherine Guenioui
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