UltraTech Cement has finalised a deal with Jaiprakash Associates, which would see the cement major takeover two cement plants for ₹5,400 crore.
UltraTech assumes the debt portion of the projects with no cash transaction involved.
The plants are based in Madhya Pradesh and the acquisition creates significant synergies for UltraTech. The company has targeted to reach 71 million tonnes a year by 2016.
Jaiprakash Associates, burdened by a loan book of₹ 54,000 crore has been trimming its debt by divesting assets over the previous quarters.
The deal would see UltraTech's capacity increase by 5 million tonnes to 65 million tonnes a year. Jaiprakash would remain the third-biggest cement producer at 22 million tonnes a year.
Ultratech shares were trading at ₹2,632, up ₹92.40, or 3.64% at 10:50 am.
Jaiprakash Associates shares were trading at ₹24, up by ₹0.55, or 2.35% at 10:50 am.