JSW completes acquisition of HeidelbergCement India grinding unit

JSW completes acquisition of HeidelbergCement India grinding unit
08 October 2013

JSW Steel has completed the acquisition of HeidelbergCement India’s 0.6Mta grinding plant in Raigad, Maharashtra, for an undisclosed sum.

The two companies signed the Business Transfer Agreements for the acquisition on 5 October, both said in respective filings with the Bombay Stock Exchange. ??"The transaction will be consummated only after obtaining all relevant approvals required under applicable laws," it further said but did not disclose the value of the deal.

The Raigad works was acquired "as a going concern on slump sale basis", meaning on the assumption that an entity will remain in business in the foreseeable future.

The deal was initially announced in May this year and forms part of HeidelbergCement’s strategy of “divesting in less strategic assets with lower margins.” This will enable the company to focus on more strategic and key operations in Central India where the company has recently expanded operations from 2Mta to 5Mta.

JSW Steel had acquired the company through its now merged associate firm JSW Ispat Steel. Announcing the deal, JSW Ispat had then said the acquisition would enable it develop a stable outlet for slag.

Published under Cement News