Ciments Picks Up Zuari Plant

Ciments Francais Italia of France has finally struck a deal with the K K Birla group for a 50 per cent stake in the 1.7 million tonne Zuari Cements Ltd in Andhra Pradesh at $90 (Rs 340 crore) per tonne. For this, a 50:50 joint venture will be formed.

The price is so far the highest in the cement sector, surpassing Lafrage's $80 per tonne payout for the Raymond unit. The deal came after French cement major showed interest in acquiring Panyam Cements in the south. However, the deal could not materialise. The Bank of America acted as the investment bankers to the KK Birla group in finding a buyer.