NEW DELHI: Competition Commission of India (CCI) on Friday cleared billionaire Kumar Mangalam Birla-promoted UltraTech Cement’s proposal to acquire a majority stake in India Cements. “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,” CCI stated in a launch.
The truthful commerce regulator additionally granted its clearance to UltraTech Cement to acquire up to 26 per cent of the paid-up fairness share capital of India Cements by means of an open provideit added.
UltraTech is engaged in the enterprise of producing and gross sales of grey cement, white cement, prepared-combine concrete, clinker, and constructing merchandise in India.
It is a subsidiary of Grasim Industries Ltd, whereas India Cements operates core and non-core companies. The core enterprise of India Cements is the manufacturing and gross sales of grey cement and prepared-combine concrete.
“Competition Commission of India (CCI) approves UltraTech Cement Ltd’s acquisition of The India Cements Ltd,” the competitors watchdog stated.
The offers past a sure threshold require approval from the regulator, which retains a tab on unfair enterprise practices and promotes truthful competitors in {the marketplace}.
In July this yr, UltraTech Cement introduced the acquisition of a 32.72 per cent stake in India Cements from promoters and their associates in a Rs 3,954 deal in a transfer to broaden its footprint in the extremely aggressive and quick-rising southern cement market, significantly Tamil. Nadu.
Besides, it had additionally introduced a Rs 3,142.35 crore open provide to acquire a 26 per cent share of ICL from its shareholders.
UltraTech leads the Indian cement market with a consolidated capability of 156.66 million tonnes every year (MTPA) of grey cement.
