According to reports, CRH’s Indian JV, My Home Industries Limited (MHIL), has struck a deal with the Shriram Group to acquire a controlling stake in Sree Jayajothi Cements. The deal has been on the cards for a while, but MHIL has had stiff competition from other major cement players.
The deal is reportedly worth Rs.1400 crore, or US$230 million, and will see Shriram Group exiting the cement industry, while the original promoters of Sree Jayajothi Cements will retain their stake.
Shriram EPC acquired the stake in the 3.2 million tpa cement plant early last year in a debt-to-equity deal when the owners could not pay for the services provided by Shriram during construction of the site. Shriram has since been looking for buyers and had reportedly held talks with PE firms including Blackstone.
“Cement was a non-core business for SEPC and by virtue of its vast experience in the cement industry, MHIL can bring its managerial and financial expertise on board and rapidly and profitably expand SJCL’s business,” T. Shivaraman, MD and CEO of Shriram EPC, told press.
For MHIL, the deal marks an opportunity to expand its business in India, taking its total capacity to 8.4 million tpa.
Irish company CRH has spent €470 million on acquisitions in the first half of this year, totalling 17 acquisitions altogether.
Edited from various sources by Katherine Guenioui
Read the article online at: https://www.worldcement.com/asia-pacific-rim/12082013/crh_picks_up_new_indian_cement_plant_101/