India's UltraTech Cement Ltd said on Sunday it had entered a binding memorandum of understanding to acquire Jaiprakash Associates Ltd's cement plants for INR165bn (US$2.457bn).

The assets have a total cement capacity of 22.4Mta, including 4Mta under implementation, and are situated in the states of Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand, Andhra Pradesh and Karnataka.

“The assets will give the company access to the newer markets of Satna, Uttar Pradesh East, Himachal Pradesh and coastal Andhra where it does not have a presence as of now,” the company said in a filing to the Bombay Stock Exchange.

The transaction is subject to definitive agreements and regulatory approvals. Completion of the deal will increase UltraTech Cement's capacity to 90.7Mta.