Billionaire Gautam Adani-led Adani Group is in advanced talks with debt-laden Jaiprakash Power Ventures Ltd. to buy its cement unit, according to reports.
The ports-to-power conglomerate could pay about Rs 5,000 crore ($606 million) for a cement grinding unit and other smaller assets, Bloomberg reported, citing people familiar with the matter.
The acquisition will be made by one of the cement units recently acquired by Adani and an announcement is expected as early as this week, the people said.
While discussions are advanced, they could still be delayed or fall apart, they added.
The Adani Group recently completed the acquisition of Ambuja Cements and its subsidiary ACC Ltd from Switzerland's Holcim Group for $6.4 billion, becoming India’s second-largest cement maker virtually overnight with an installed production capacity of 67.5 million tons annually.
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The board of Jaiprakash Associates has decided to divest the company’s “significant” cement business to help lower debt, according to stock exchange filing Monday.
Meanwhile, Jaiprakash Power Ventures said its board is looking to sell Nigrie cement grinding unit as well as other non-core assets.
