CRH Plc, an Irish diversified building materials company is planning to buy Jaiprakash Associates' cement plants in Gujarat and Andhra Pradesh, as mentioned in some media reports. The deal if finalized is expected to fetch Jaiprakash Associates a sum of Rs 8,000-9,000 crore, which could be utilized towards reduction of its total consolidated debt of about Rs 45,000 crore. Further, it has been reported that both the parties would meet in the last week of this month to finalize the transaction.
CRH plc, which has a primary listing on the London Stock Exchange (LSE), is an Irish diversified building materials company, which manufactures and distributes building material products from the fundamentals of heavy materials and elements to construct the frame, through exterior products that complete the building envelope, to distribution channels, which service construction fit-out and renewal.
Jaiprakash Associates, in last year, divested its cement units in Gujarat and Andhra Pradesh into a separate company, Jaypee Cement, in order to monetize a part of its investments to help the parent company reduce its debt. Jaypee group’s cement division, currently operates modern, computerized process control cement plants with an aggregate capacity of 21.3 MTPA.