Orient Cement terminates agreement with Jaypee Group firms

India’s Orient Cement has terminated the agreement to acquire two assets, Bhilai Jaypee Cement Ltd and the Nigrie cement grinding unit, from Jaypee Group firms for a total investment of INR19.46bn (US$288.23m), according to the Hindu Business Line.

Orient Cement had signed a share purchase agreement (SPA) with Jaiprakash Associates Ltd (JAL) for 74 per cent equity shares of Bhilai Jaypee Cement. Furthermore, the company had signed a business transfer agreement (BTA) with Jaiprakash Power Ventures Ltd (JPVL) and JAL for the acquisition of the Nigrie grinding unit.

"Under the provisions of the SPA and the BTA, either party is entitled to terminate the agreement if the closing does not take place within expiry of 12 months from date of execution of the SPA and the BTA," said Orient Cement in a regulatory filing.

Bhilai Jaypee Cement has a cement capacity of 2.20Mta and 1.10Mt of clinker, while the Nigrie grinding unit has a production capacity of 2Mta.