Billionaire Kumar Mangalam Birla’s promoted UltraTech Cement received major relief on Friday after the Competition Commission of India (CCI) cleared its proposal to acquire a majority stake in India Cements, reported PTI.
In addition, the CCI also granted UltraTech Cement the license to acquire up to 26 per cent of India Cements’ paid-up equity share capital through an open offer.
“The proposed combination envisages UltraTech Cement Ltd’s (UltraTech/acquirer) acquisition of 32.72 per cent of the paid-up equity share capital of India Cements Ltd (India Cements/target) from the promoters and members of the promoter group of India Cements and Sri Saradha Logistics Pvt Ltd,” the news agency quoted CCI’s release as saying.
“Competition Commission of India (CCI) approves UltraTech Cement Ltd’s acquisition of The India Cements Ltd,” the competition watchdog said.
In securing the approval from the CCI, J Sagar Associates, Advocates & Solicitors (JSA), acted as the sole advisor to UltraTech Cement Limited (UltraTech).
According to details, all business deals beyond a certain threshold require approval from the regulator that keeps a tab on unfair business practices and promotes fair competition in the marketplace.
About the deal:
Earlier in July 2024, UltraTech Cement announced the acquisition of a 32.72 per cent stake in India Cements from promoters and their associates in a ₹3,954 crore deal. With this move, the firm planned to expand its footprint in the fast-growing southern cement market, particularly Tamil Nadu.
In addition, UltraTech Cement announced a ₹3,142.35 crore open offer to acquire a 26 percent share of ICL from its shareholders.
As per details, UltraTech leads the Indian cement market with a consolidated capacity of 156.66 million tonnes of grey cement per annum (MTPA).
About UltraTech:
Kumar Mangalam Birla’s promoted firm manufactures and sells grey cement, white cement, ready-mix concrete, clinker, and building products in India.
UltraTech Cements is a subsidiary of Grasim Industries Ltd.; on the other hand, India Cements operates core and non-core businesses. India Cements manufactures and sells grey cement and ready-mix concrete.
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