CRH is said to be interested in buying a stake in Jaiprakash Associates cement plants in Gujarat and Andhra Pradesh, according to Indian press reports.
Speaking to the Economic Times of India, a source familiar with the situation said: "The discussions between the two companies are in an advanced stage, but nothing has been finalised. Both sides are expected to meet in the last week of this month to give a final shape to the transaction. But it may go either way.”
The AV Birla Group was originally said to be in talks with Jaiprakash for the deal, but discussions have reportedly been stalled due to differences over valuations as well as other issues. UltraTech Cement was also said to be in the fray but talks lapsed over pricing issues and because UltraTech was only interested in acquiring the Gujarat facility. CRH, however, is reported to be interested in buying the complete stock.
In 2008, CRH had entered India by acquiring a 50% stake in Hyderabad-based cement producer My Home Industries. The company currently has an installed capacity of 4.2Mt.
