UltraTech has agreed to acquire Jaypee Group’s 22.4 million tonne of cement capacity assets for Rs 16,500 crore, making it the largest deal in the Indian cement sector.

Kumar Mangalam Birla’s cement flagship firm entered into a binding agreement with Jaiprakash Associates, for the acquisition of its identified cement plants having a total cement capacity of 22.4 mln tpa situated in Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand, Andhra Pradesh and Karnataka. As per the agreement these plants have been valued at Rs.16,500 crore. A number of foreign and Indian companies were in the race to acquire these plants.

The deal will also include a four mln tpa plant under implementation at a cost of Rs 470 crore. The acquired assets will give UltraTech access to the newer markets in Satna, UP East, Himachal Pradesh and Coastal Andhra.

The acquisition, which is subject to definitive agreements and regulatory approvals as may be required, will augment UltraTech’s cement capacity to 90.7 mln tpa from the current 68.3 mln tpa.