CRH ends bid to buy into Jaypee
IRISH cement giant CRH has pulled out of the running to buy a stake in India's third-biggest cement manufacturer, Jaypee.
The two companies have been in talks since the start of August, but CRH said negotiations had been terminated because the parties were unable to agree terms.
Shares in CRH closed down 1.5pc at €14.45 each yesterday.
The company is a regular buyer of bolt-on deals, including spending €250m on 18 acquisitions in the first half of this year alone.
That included increasing its stake in Chinese associate Yatai Building Materials.
The planned Indian investment was to buy an initial 51pc in the cement operations of the Jaiprakash (Jaypee) Associate conglomerate's cement assets in the state of Gujarat, with the option of hiking the stake to 65pc over three years. There was speculation in the markets that CRH could pay as much as €600m for the stake.
As well as owning India's third-largest cement maker, the Jaypee Group has a string of other businesses and is involved in sectors including hospitality, power and property.
CRH has been keen to expand into India, and is already a player in a number of emerging markets.
The company first entered the Indian market in 2008 through a joint venture with My Home Industries, a cement maker in Andhra Pradesh.
In August, CRH chief operating officer Albert Manifold said the group had a number of other potential acquisition deals in the pipeline in the US and in Europe.
He said these were at various stages of negotiation.