8-K

CRH PUBLIC LTD CO 8-K Report (Aug 7, 2012)

Filed August 7, 2012For Securities:CRH

Summary

CRH Public Limited Company (CRH) announced on August 7, 2012, that it has entered into negotiations for a potential acquisition of an equity stake in the Gujarat cement business of Jaypee Cement Corporation (Jaypee). This potential transaction involves Jaypee's cement operations located in western and eastern Gujarat, India, which include a clinker plant with a capacity of 3.6 million tonnes and significant cement grinding capacity. This move signifies CRH's strategic interest in expanding its presence in the Indian building materials market, building upon its existing joint venture in Southern India. The announcement highlights the scale of the Gujarat operations and positions it as a potentially significant addition to CRH's portfolio, subject to satisfactory due diligence and regulatory approvals.

Key Highlights

  • 1CRH is in negotiations to acquire an equity stake in Jaypee Cement Corporation's Gujarat cement business.
  • 2The potential acquisition includes a 3.6 million tonne clinker plant and substantial grinding capacity in Gujarat, India.
  • 3This move represents CRH's continued expansion strategy in the growing Indian market.
  • 4Jaypee is a major Indian cement producer with significant market capitalization and turnover.
  • 5The transaction is contingent upon due diligence, board approvals, and regulatory clearance.
  • 6CRH previously entered the Indian market in 2008 via a joint venture in Andhra Pradesh.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce that CRH plc has entered into negotiations with Jaypee Cement Corporation regarding a potential acquisition of an equity stake in Jaypee's cement assets located in Gujarat, India.

CRH is considering acquiring an equity stake in Jaypee's Gujarat cement business, which comprises a 3.6 million tonne clinker plant in Kutch (western Gujarat) with 2.4 million tonnes of cement grinding capacity, and an additional grinding plant in eastern Gujarat with a capacity of 2.4 million tonnes per annum.

The completion of any transaction is subject to several conditions, including satisfactory due diligence, approval from the respective Boards of Directors, and the granting of required regulatory approvals.

CRH entered the Indian market in 2008 through a joint-venture with My Home Industries Limited, a leading cement manufacturer in the South Indian state of Andhra Pradesh.