CCI approves UltraTech Cement’s acquisition of India Cements
New Delhi: The Competition Commission of India (CCI) on Friday approved UltraTech Cement’s proposal to acquire a majority stake in India Cements, promoted by billionaire Kumar Mangalam Birla.
The acquisition involves UltraTech Cement acquiring a 32.72% stake in India Cements from its promoters, members of the promoter group, and Sri Saradha Logistics Pvt Ltd, according to a CCI release.
Additionally, the fair trade regulator has authorised UltraTech Cement to acquire up to 26% of India Cements’ equity through an open offer.
UltraTech Cement, a subsidiary of Grasim Industries, is a major player in the manufacturing and sales of grey cement, white cement, ready-mix concrete, clinker, and other building products.
India Cements operates in both core and non-core sectors, with its primary focus being grey cement and ready-mix concrete production.
"CCI approves UltraTech Cement Ltd's acquisition of The India Cements Ltd," the competition watchdog confirmed in a statement.
Regulatory approval is mandatory for deals exceeding a certain threshold to ensure fair competition and prevent monopolistic practices.
In July 2024, UltraTech announced plans to acquire a 32.72% stake in India Cements from its promoters for Rs 3,954 crore, aiming to strengthen its presence in the competitive southern cement market, particularly in Tamil Nadu.
The company also unveiled a Rs 3,142.35 crore open offer to acquire an additional 26% of India Cements’ shares from its shareholders.
UltraTech currently leads the Indian cement industry with a consolidated production capacity of 156.66 million tonnes per annum (MTPA) of grey cement.
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