Birla Corp to acquire 2 Lafarge units for Rs 5k cr

Birla Corp announced that it has agreed to acquire Jojobera and Sonadih cement businesses from Lafarge India along with Concreto and PSC brands for an enterprise value of Rs. 5,000 crores.
The total capacity of the acquired entities stood at 5.15 million tonnes per annum (mtpa) with mineral rights over adequate reserves of limestone.
“Upon completion of this transaction, Birla Corp will consolidate its position in the eastern India cement market where demand supply scenario and outlook continue to remain buoyant,” Birla Corp said issuing a statement.
With a total operational cement capacity of 10 mtpa, Birla Corp has units in Rajasthan, Madhya Pradesh, Uttar Pradesh and West Bengal. Post completion of this transaction, it will have a total capacity of 15 mtpa.
“With addition of Concreto and PSC brands to its existing basket of brands, Birla Corp will derive synergy benefits through consolidation of its capacity,” the statement adds.
Harsh V Lodha, Chairman of Birla Corp, “The acquisition business, together with the Concreto and PSC brands, perfectly fit into our strategic vision and ambition of enhancing our competitiveness in our chosen markets.”

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