Latest News | UltraTech Cement Gets CCI's Clearance to Acquire Majority Stake in India Cements

New Delhi, Dec 20 (PTI) The 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 said in a release.

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The fair trade regulator also granted its clearance to UltraTech Cement to acquire up to 26 per cent of the paid-up equity share capital of India Cements by way of an open offer, it added.

UltraTech is engaged in the business of manufacturing and sales of grey cement, white cement, ready-mix concrete, clinker, and building products in India.

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It is a subsidiary of Grasim Industries Ltd, while India Cements operates core and non-core businesses. The core business of India Cements is the manufacturing and sales of grey cement and ready-mix concrete.

"Competition Commission of India (CCI) approves UltraTech Cement Ltd's acquisition of The India Cements Ltd," the competition watchdog said.

The deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices and promotes fair competition in the marketplace.

In July this year, UltraTech Cement announced 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 move to expand its footprint in the highly competitive and fast-growing southern cement market, particularly Tamil Nadu.

Besides, it had also announced a Rs 3,142.35 crore open offer to acquire a 26 per cent share of ICL from its shareholders.

UltraTech leads the Indian cement market with a consolidated capacity of 156.66 million tonnes per annum (MTPA) of grey cement.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)