Birla Corporation on 17 August 2015 signed an agreement with French-based Lafarge Group to acquire its Jojobera unit in Jharhkand and Sonadih in Chattisgarh for a sum of 5000 crore rupees.
The transaction will be funded through existing cash reserves and incremental debt and is subject to approvals, including clearance from the Competition Commission of India.
As per the acquisition deal, Birla Corp will acquire these cement units along its brands Concreto and PSC and also its management team. These two plants have total cement capacity of 5.15 million tonnes per annum (mtpa) and have adequate reserves of limestone.
Earlier in July 2015, the Lafarge disinvested from these two units in order to fulfil the directions given by Competition Commission of India (CCI) as a part to conclude its mega global merger with Swiss-based Holcim Ltd and its operations in Indian.
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Who: Birla Corporation
When: 17 August 2015