UltraTech to acquire 51 per cent in Dubai's Star Cement: report
28 April 2010
UltraTech Cement is set to acquire a 51 per cent stake in Dubai-based Star Cement for an undisclosed sum, which will give it access to Asian and African markets, according to an unconfirmed newspaper report today.
Officials at the two firms have agreed to a deal and lawyers are working on it, the report said, citing two unnamed people familiar with the development.
UltraTech is set to become India's largest cement maker with a capacity of 49 million tonnes per year, after its proposed takeover of the Aditya Birla group's cement businesses later this year.
Star Cement, an associate company of United Arab Emirates conglomerate ETA Ascon Star, has a total installed capacity of 3.8 million tonnes a year, with a presence in growing markets such as Bahrain, Sudan and Bangladesh, the paper said.
Officials at the Dubai firm did not respond to phone calls and e-mail queries, while a Birla group spokeswoman declined to comment. Officials at Ultratech were also not available for comment.
In February, Oman's Raysut Cement had said it was planning a bid to buy Star Cement.