UltraTech Cement calls off deal with Jaiprakash Associates for Madhya Pradesh assets

Kumar Mangalam Birla-led UltraTech has called off a Rs 54000 Cr. Deal to buyingJaypee Group’s 2.1 mtpa cement plant in Madhya Pradesh as new MMDR Act 2015.

In 2014 UltraTech Cement and Jaiprakash Associates signing on an milestone agreement to buy its cement assets in Madhya Pradesh along with related limestone mining rights. UltraTech was forced to call off the deal after the Bombay High Court refused to approve the scheme of arrangement entered between UltraTech Cements an Jaiprakash Associates (JAL), for acquisition of entire cement business along with mining rights situated at Bela and Siddhi in Madhya Pradesh.

The court cited recent amendments in the provisions of the Mines and Minerals (Development and Regulations) Act of 1947effect of that transfer of mines granted other than through auction.In this situation they  decided to apply  for the withdrawal of the scheme filed before the High Court, which was permitted by the High Court at the hearing held February 2016

Extra info:
-KKR( Kohlberg   Kravis Roberts), UltraTech & Dalmia in race to buy Jaypee cement bus
-Justice Dhirendra Waghela sworn-in as new Chief Justice of India

                                                                                                     Source – The Hindu

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