India’s Shree Cement confirmed that its board approved acquisition of majority stake in the UAE-based Union Cement Company (UCC).
The deal is for 92.83 percent of the business, for which they will pay $305.24 million, according to a company statement. The transaction will take up to nine months to complete.
The acquisition of Union Cement means that the Shree will be able to expand its cement production from 29.3 million tonnes per year to 33.3 million tonnes – a 13.65 percent increase. It will also establish the Kolkata-headquartered company’s first footprint outside of India.
The deal comes on the back of a highly successful 2017 for Shree Cement, which reported a 41.58 percent increase in its standalone net profit at $520 million for Q4, 2017. Total income during the quarter stood at $361.7 million, up 7.03 percent from $350.1 million in the corresponding period.
Union Cement was established in 1972 and is one of the leading cement makers in the UAE, with its main operations of Ras Al Khaimah. It boasts a clinker capacity of 3.30mt and cement capacity of 4mt. It is traded on the Abu Dhabi Securities Exchange.
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