Mexico's Cemex SAB, the world's largest building materials supplier and third largest cement producer, is in an advanced stage to buy the cement business of India's Murli Industries for about $550 million
Citing an unnamed sourrce involved in the negotiations, The Economic Times today reported that Cemex has made an offer of $550 million after several months of due diligence, but the price is still being negotiated and the final figure would depend on the outlook for cement prices.
Earlier known as Murli Agro Products Ltd, Nagpur-based Murli entered the cement sector in February 2010 through its cement plant in Chandrapur in Maharashtra with an installed capacity of 3 MTPA.
It is also planning to build two additional cement plants in Junagadh in Rajasthan and Gulbarga in Karnataka and Rajasthan, both with an identical capacity of 3 MTPA, along with two captive power plants of 50 MW each at a total investment of Rs1,135 crore each.
The cement plants are expected to be operational by the middle of 2013.
The company in August 2010 had appointed Motilal Oswal Investment Advisors to find a buyer for its cement business, but not finding any potential buyers, was mulling to raise Rs1,000 crore through various routes to finance its two upcoming cement plants and to repay its Rs600 crore debt.