Ireland/India: International building materials group CRH has confirmed its entry into negotiations to buy an equity stake in Indian producer Jaypee Cement Corporation. Jaypee Cement owns three cement facilities in the Indian state of Gujurat, in the west of the country, and another in Andhra Pradesh, in the south-east.
CRH said in a statement that the operations in Gujurat consist of clinker plants with a total capacity of 3.6Mt/yr. There are also two cement grinding plants with a total capacity of 2.8Mt/yr. Jaypee Cement is India's third-largest cement maker.
"The completion of any transaction would be subject to satisfactory due diligence, the approval of the respective boards of directors and the granting of regulatory approval," said CRH.
CRH chief executive Myles Lee said at the group's AGM in May 2012 that the company was focused on opportunities in China and India in order to drive long-term growth. CRH has spent close to Euro250m on bolt-on acquisitions in the first half of 2012. This included a further equity injection into its China associate Yatai Building Materials. CRH first entered the Indian market in 2008 through a joint venture with My Home Industries, a cement maker in Andhra Pradesh.
