CRH ends Jaypee negotiations

Materials producer CRH said negotiations in India over the possible acquisition of an equity stake in the country’s third largest cement producer, Jaypee Cement, have been terminated.

The assets being discussed included a 3.6 million tonne per year clinker plant in Klutch, western Gujarat, which sits with a 2.4 million tonnes per year grinding plant. There is also a 2.4 million tonnes per year grinding plant in eastern Gujarat.

The company confirmed in August that negotiations were underway over the purchase, but has now said the two companies have been unable to agree terms.

“CRH acknowledges the co-operation of the Jaypee management team throughout the negotiations and due diligence process,” the company said in a statement.

As well as being active in the cement sector, the Jaypee Group includes Jaiprakash Associates, one of India's largest contractors.