Birla Corporation said Monday the company has agreed to acquire Jojobera and Sonadih cement businesses (acquisition business) from Lafarge India for an enterprise value of Rs 50.00 billion. The transaction would be funded through existing cash reserves and incremental debt. The transaction would be carried either directly or through its wholly owned subsidiary and is subject to approval of Competition Commission of India and other relevant regulatory approvals.

Under this transaction, Birla Corp will acquire the acquisition business, which comprises of  an integrated cement unit at Sonadih (Chhattisgarh), a cement grinding  unit  at Jojobera  Qharkhand), along with Concreto and PSC brands and an excellent management team. Acquisition business has a cement capacity of 5.15 million tonnes per annum (mtpa), with mineral rights over  adequate reserves of limestone.

"The acquisition business has a demonstrated track record of operational and commercial excellence with profitability amongst the highest in the industry aided by raw material linkages, strong distribution networks and excellent brand loyalty in the attractive Eastern  India cement market. Upon completion of this transaction, Birla Corp will consolidate its position in the Eastern India cement market where demand supply scenario and outlook con.tinue to remain buoyant," the company said.

Harsh Lodha, chairman of Birla Corp, said, ''I am very pleased to announce this very important transaction in Birla Carp's history. The Acquisition Business together with the Concreto and PSC brands, perfectly fit into our strategic vision and ambition of enhancing our competitiveness in our chosen markets. I am glad to welcome new talent and leaders to our Group, who share our convictions and professional culture.''

Shares of the company gained Rs 53.55, or 11.82%, to trade at Rs 506.50. The total volume of shares traded was 31,313 at the BSE (11.07 a.m., Monday).