Reliance Infra cement business could go to UltraTech

According to reports, it looks like UltraTech Cement is in line to acquire Reliance Infrastructure’s cement business, being sold as part of a business restructure. UltraTech Cement, part of the Aditya Birla Group, is already one of India’s largest cement companies. The acquisition would add a further 5.8 million t to its operational capacity, which is in keeping with UltraTech’s previously stated goal of achieving 100 million t of cement capacity by 2020. UltraTech’s current capacity is around 69 million t, and it has been picking up other assets being divested by debt-laden Indian companies, as well as seeking merger opportunities such as that with Century Textiles that will add 13 million t of cement capacity.

The assets for sale by Reliance Infrastructure are estimated to be worth some Rs.5000 – 5500 crore. UltraTech has denied the reports, which have been cited as coming from an unnamed source.

Edited from various sources by Katherine Guenioui

Sources:

• Money Control
• Business Standard

Read the article online at: https://www.worldcement.com/indian-subcontinent/27112015/reliance-infra-cement-business-could-go-to-ultratech-79/