“A Study on Merger and Acquisition of Ultratech and Jaypee Cement Groups”
Author Name : Devarapagu Ramesh, Ch. Siva Priya
The project based on the merger and acquisition of Ultratech cement and Jaypee groups. It is horizontal merger, Ultratech cement is a one of the largest cement manufacture in the country but it has been limited to few areas and it doesn’t concentred on the areas where the demand is more in the country, to expand it business geographically, Ultratech plan to acquire big cement plants in the country which was hold by Jaypee Associations, so they made a deal with Jaypee cement to acquire its biggest cement plants in the area’s like Gujarat, Madhya Pradesh, Andhra Pradesh, Uttar Pradesh, Uttarakhand, Himachal Pradesh, to Acquire those plants, they offered 16,189 crores to Jaypee cements groups, Jaypee cement showed positive response to the deal because Jaypee associations facing debt burden form it lenders banks ICICI, YES Bank, to clear those debts Jaypee cements accepted the deal with Ultratech.
Ultratech cement Group Company this marks the largest acquisition of cement assets in India. As part of the deal Rs 12500 crores of loans on the books of Jai Prakash associates ltd will move to Ultratech. From being classified as a non-performing asset the debt will be upgraded to AAA status.