Local press has reported that UltraTech Cement is in talks with Jaiprakash Associates to buy Jaypee Cement’s Gujarat operations. As we reported earlier this year, CRH plc was also in talks over an equity stake in Jaypee’s interests here, though the deal fell through when the companies were unable to agree on terms.
Jaypee has an installed capacity of 4.8 million tpa at its Gujarat facilities, and the negotiations are currently hinging on the exact price per tonne that UltraTech is willing to pay. Local reports suggest that Jaypee is asking in excess of US$180/t, whereas UltraTech is trying to drive that figure down below US$160.
Regardless, it is expected that the deal will be completed by the end of the year, and is estimated to be worth US$700 – 890 million.
Written by Jack Davidson.