The Competition Commission of India on Wednesday approved the acquisition of clinker, cement and power plants of Jaiprakash Associates Ltd and its associate by Dalmia Cement (Bharat) Ltd.
“The Commission approved the proposed combination relating to acquisition of clinker, cement and power plants belonging to Jaiprakash Associates Limited and its associate (Sellers) (Target Assets), by the Dalmia Cement (Bharat) Limited (Acquirer) (Proposed Combination),” said CCI in its release.
Dalmia Cement (Bharat) Ltd is a wholly-owned subsidiary of Dalmia Bharat Ltd (DBL). Dalmia Bharat is engaged in the business of manufacture and sale of cement, sugar and refractory services. DBL is the ultimate parent entity of the Dalmia Bharat Group.
The assets are engaged in the manufacture and sale of clinker, grey cement and thermal power generation in the states of Madhya Pradesh, Uttar Pradesh and Chhattisgarh.
Dalmia Cement (Bharat) Limited (DCBL), wholly owned subsidiary of Dalmia Bharat Limited, in December announced an agreement to acquire clinker, cement and power Plants from Jaiprakash Associates Limited and its associate having total cement capacity of 9.4 MnT at an enterprise value of ₹5,666 crore. This includes clinker capacity of 6.7MnT and thermal power plants of 280MW capacity.
These Jaypee Group assets are situated in Madhya Pradesh, Uttar Pradesh and Chhattisgarh and the acquisition will enable Dalmia Bharat to expand its footprint into the central region.
With this agreement, Jaypee group flagship company Jaiprakash Associates has decided to divest from cement business completely. In the past, to reduce debt, Jaiprakash Associates had divested more than 20 MTPA cement capacity in favour of UltraTech Cement Limited during 2014 and 2017.
