New Delhi: In a setback to crisis-hit Jaypee group, the CK Birla group firm Orient Cement has terminated its Rs 1,946-crore deal to acquire Jaiprakash Associates Ltd's (JAL) two firms - Bhilai Jaypee Cement and Nigrie Cement Grinding Unit.

The deal has been terminated as both the parties failed to complete the transactions within the stipulated 12-month time, according to regulatory filings. Jaypee Group has been selling cement plants and other assets to reduce its debt from the peak level of around Rs 75,000 crore.

JAL, the flagship company of Jaypee Group, had last year concluded a Rs 16,189cr sale of its six integrated cement plants and five grinding units, having a capacity of 21.2 million tonnes to Aditya Birla group firm UltraTech. On May 31 last year, Orient Cement had signed a share purchase agreement with Jaiprakash Associates Ltd (JAL), to acquire a 74 per cent stake in Bhilai Jaypee Cement Ltd. A business transfer agreement was also signed among Orient Cement, Jaiprakash Power Ventures Ltd (JVPL) and JAL for the acquisition of Nigrie Cement Grinding Unit as going concern from JPVL.

Both the parties had agreed to conclude the deal in 12 months. "Accordingly, since the closing has not been achieved within the said period of 12 months, the company has terminated the share purchase agreement and the business transfer agreement with notice to the other parties," Orient Cement said.