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The Competition Commission of India (CCI) has approved the proposed combination relating to the acquisition of clinker, cement and power plants belonging to Jaiprakash Associates and its associates by the Dalmia Cement (Bharat).
The acquirer is a wholly-owned subsidiary of Dalmia Bharat (DBL) which has been in the manufacture and sale of cement for over 80 years, according to a statement from CCI, released on Wednesday evening. DBL is the ultimate parent entity of the Dalmia Bharat Group (acquirer group). DBL, directly and through its "controlled" entities, is primarily engaged in the manufacture and sale of cement, the manufacture and sale of sugar, and the provision of refractory services. The target assets are engaged in the manufacture and sale of clinker in India, manufacture and sale of grey cement primarily in Madhya Pradesh, Uttar Pradesh, Chhattisgarh and coal-based thermal power generation primarily for captive consumption purposes in India. According to the anti-trust body, a detailed order will follow. There were reports on January 7 that Jaiprakash Associates -- Jaypee Group's flagship firm -- defaulted on loans of Rs 4,059 crore, comprising both the principal and interest amount. In a regulatory filing, Jaiprakash Associates (JAL) said the company on December 31 defaulted on repayments of the principal amount Rs 1,713 crore and interest of Rs 2,346 crore. The loans pertained to various banks and the nature of the obligation is fund-based working capital, non-fund-based working capital, term loans and foreign currency convertible bonds. (ANI)
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