Building materials group CRH plc has announced that negotiations between itself and India’s Jaypee Cement Corporation regarding an equity stake acquisition in Jaypee’s Gujarat cement business have been terminated as the companies were unable to agree on terms.
The company initially announced that it had entered negotiations with Jaypee in August. The equity stake was to include a 2.4 million t cement grinding plant and a 3.6 million t clinker plant in Kutch, western Gujarat, as well as a further 2.4 million t capacity grinding plant in eastern Gujarat.
In its statement, CRH acknowledged the cooperation of the Jaypee management team throughout the negotiations and due diligence process.
CRH, which is headquartered in Ireland and operates on an international scale, first entered the Indian cement market in 2008 through a joint venture with My Home Industries Ltd in Andhra Pradesh.Adapted from press releases by Louise Fordham.