India: UltraTech purchase of 22.4Mta capacity set to be announced

UltraTech Cement, already India's largest cement producer, is expected to confirm its purchase of Jaiprakash Associates' cement business.

A report by CNBC-TV18 states that the deal will be officially announced on 31 March. UltraTech will acquire cement plants with a capacity of 22.4Mta for INR170bn (US$2.56bn).

UltraTech has been seeking to purchase assets from Jaiprakash Associates for some time. In December 2015 a deal for the Bela and Sidhi plants was suspended because a new law prevented the transfer of associated mining rights. This deal has now become part of the larger package which will see UltraTech increase its production capacity by almost a third, rising from 68.3Mta to over 90Mta.