Billionaire Kumar Mangalam Birla’s UltraTech Cement got a major relief on Friday after the Competition Commission of India (CCI) reportedly approved its proposal to acquire a majority stake in India Cements. PTI.
In addition, CCI has also granted UltraTech Cement permission to acquire up to 26% of the paid-up share capital of India Cements through a public offer.
“The proposed merger envisages UltraTech Cement Ltd (UltraTech/acquirer) acquiring 32.72% of the paid-up share capital of India Cements Ltd (India Cements/Target) from the promoters and promoter group members of India Cements and Sri. Satadha Logistics Pvt Ltd ”, the news agency quoted a CCI press release as saying.
“The Competition Commission of India (CCI) has approved the acquisition of India Cements Ltd by UltraTech Cement Ltd,” the competition watchdog said.
J Sagar Associates, Advocates & Solicitors (JSA) acted as the sole consultant to UltraTech Cement Limited (UltraTech) in the process of obtaining CCI approval.
According to details, all business transactions above a certain threshold require approval from regulators, who will keep a close eye on unfair business practices and promote fair competition in the market.
About the transaction:
Earlier in July 2024, UltraTech Cement announced the acquisition of 32.72% stake in India Cements from the promoters and its partners $3,954 crore deal. With this move, the company plans to expand its footprint in the fast-growing southern cement market, especially Tamil Nadu.
Additionally, UltraTech Cement announced $Public offer of Rs 3,142.35 crore to acquire 26% stake from ICL shareholders.
According to details, UltraTech leads the Indian cement market with a combined production capacity of 156.66 million tonnes of gray cement per annum (MTPA).
About Ultratech:
Kumar Mangalam Birla’s companies manufacture and sell gray cement, white cement, ready-mix concrete, clinker and construction products in India.
UltraTech Cement is a subsidiary of Grasim Industries Ltd.; on the other hand, Indian Cements operates core and non-core businesses. Indian Cements manufactures and sells gray cement and ready-mix concrete.