Economy & Market
Italcementi denies reports of buying plant in India
Italian cement maker Italcementi has denied that it was in talks to buy a cement plant owned by Jaiprakash Associates as part of plans to expand in India.
Two sources with direct knowledge of the situation said last week that Italcementi was in talks to bid for one of the two cement plants owned by Jaiprakash in a deal worth about $500 million.
In the first quarter, India accounted for 6 per cent of revenues at debt-laden Italcementi, which is being reorganised as sales are dragged lower in Europe by the economic downturn.
An Italcementi spokesman told a news agency that the company has denied of having any talks under way with Jaiprakash Associates in India, even though the company confirm the interest of the group in evaluating any opportunities for growth in the country.
Jaiprakash plans to raise up to $1.6 billion from selling the two cement plants in western Gujarat and southern Andhra Pradesh states to pay down part of its $8 billion debt.