India's UltraTech takes 51% stake in Star Cement

The Indian-based UltraTech Cement's acquisition of a 51-per cent stake in Dubai-based Star Cement will include its plants in the UAE, according to a reliable industry source.

"The deal is expected to cover its plants in Ras Al Khaimah, Abu Dhabi and Ajman," said an industry source who did not wish to be named.

Star Cement, when contacted, declined to comment or clarify on the deal.

The company has a clinker production plant in Ras Al Khaimah, cement grinding plants in Abu Dhabi, Ajman, Bahrain, Yemen, Bangladesh, a cement storage and packing terminal in Sudan and a precast factory in Abu Dhabi.

Start Cement is an associate of the UAE business group ETA Ascon Star and has a total installed capacity of 3.8 million tonnes a year.

According to agency reports, the deal was concluded for an "an undisclosed sum, which will give it access to Asian and African markets."

Officials at the two firms have agreed to a deal and lawyers are working on it, the report said, citing two unnamed people familiar with the development.

UltraTech is set to become India's largest cement maker with a capacity of 49 million tonnes per year, after its proposed takeover of the Aditya Birla Group's cement businesses later this year, the report added.

In February, Oman's Raysut Cement said it was planning a bid to buy Star Cement.