JSW Steel has officially acquired HeidelbergCement India's grinding plant in Raigad, Maharashtra, for an undisclosed sum. The acquisition was initially announced in May 2013 and the two companies signed the Business Transfer Agreements on 5 October. The transaction is subject to the relevant approvals.
The acquisition of the 0.6 million tpa plant is undertaken on the basis that the facility will remain in business for the foreseeable future. JSW Steel made the deal through its associate firm, JSW Ispat Steel. The grinding plant will be able to make use of the company's supply of blastfurnace slag from its steel works.
For HeidelbergCement, the deal is part of its targeted divestment of less strategic assets with lower margins, which will enable it to focus on more key operations, such as its recently expanded 5 million t cement plant in Central India.