India's largest cement producer UltraTech Cement is understood to be in talks with Jaypee Group for the latter's business in Ahmedabad, Gujarat.
Local press have reported that the deal is valued at around US$700-890m and is likely to close by year-end. Jaypee's Gujarat operations have a capacity of 4.8Mta. The company also has cement assets in Andhra Pradesh.
The proceeds received by Jaypee would be used in part to meet capacity expansion and retire debt. CRH had also been in negotiations for the stake in the Gujarat assets but talks collapsed back in October of this year.