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Commodity M&As Run into Hurdle: Top Drawer Deals to be Renegotiated Over New Mining Law

News:

The Centre has asserted that captive mines allotted in the past cannot be transferred under the new mining law. That could mean big-ticket deals such as UltraTech's takeover of Jaypee's cement plants and Lafarge's plan to sell two units to Birla Cement will have to be renegotiated. 

Source: ET

SNP Insight:

The clarification on the part of the government highlights the impending need to renegotiate one of the largest deals in the Indian cement industry. With the existing law the deals seem to be unviable for the companies and may in turn call for withdrawal of the deals as well further dampening the investers interest in already ailing steel and cement industry. Thus it would be interesting to see the due course of action in the commodity M& A deals. 

Source: SNP Infra Research