CCI approves Ultratech Cement's acquisition of India Cements

The Competition Commission Of India on Friday approved UltraTech Cement's acquisition of India Cements, the antitrust watchdog said in a post on social media platform X.

"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.

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.


Earlier, Aditya Birla Group flagship company UltraTech Cement announced that it will acquire a 32.72 per cent stake in India Cements from promoters and their associates in a Rs 3,954 deal to expand its footprint in the highly competitive and fast-growing Southern cement market, particularly Tamil Nadu. Besides, Ultratech has also announced a Rs 3,142.35 crore open offer to acquire another 26 per cent share of India Cements Ltd (ICL) from its shareholders.

With an installed capacity of 154.86 million tonnes per annum (MTPA) of grey cement, UltraTech Cement leads the Indian cement industry. It has an ambition to become one of the largest cement companies in the world and and has set a target for 200 MTPA.

In June, UltraTech acquired 23 per cent shares of ICL. It had acquired Damani-group's stake in India Cements Ltd (ICL) through two block deals estimated at around Rs 1,900 crore.

ICL has a total Group capacity of 14.45 MTPA of grey cement. Of this, 12.95 MTPA is in the south, and 1.5 MTPA is in Rajasthan.
(more to come)