Economy & Market
Cemex-Murli deal hits roadblock
The deal between Cemex and Murli industries could not be materialise, the reason being higher valuations sought by Murli Industries. Murli has an existing capacity of 3 mtpa (mtpa) at Chandrapur in Maharashtra and limestone reserves for the same, which it hopes to sell off. The company was in talks with Ambuja Cements and Italicementi for sale of the assets before Cemex entered the scene.
"Earlier, Murli was in talks with Ambuja. It was asking for $250 per tonne and after the third round of discussions, Ambuja walked away. Later, Italicementi did due diligence, but nothing worked out. Finally, they have been talking to Cemex. Murli has already rejected what Cemex has offered in the last four rounds of talks, so it is unlikely Cemex will take this deal seriously. "Nothing is happening in the deal as of now," a source said, requesting anonymity.
Murli Industries has been recently barred from market trading by the Securities and Exchange Board of India for allegedly violating guidelines and accused the promoter of colluding with broker to manipulate share prices.
Murli Industries Ltd
Tel: 0712-268 3000/305 0000
Fax: 0712-268 4422