CCI approves UltraTech Cement’s acquisition of India Cements

CCI approves UltraTech Cement’s acquisition of India Cements

Competition Commission of India on December 20 said it has approved UltraTech Cement Limited’s acquisition of India Cements Limited (ICL).

Earlier in July this year, UltraTech Cement had announced the acquisition of a 32.72 per cent stake in India Cements from promoters and their associates in a Rs 3,954 crore 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 26 per cent share of ICL from its shareholders.

Earlier this month, UltraTech Cement has received a notice from the fair trade regulator CCI over its proposed acquisition of the South-based India Cements Ltd.

UltraTech Cement, in a regulatory filing, said it has received notice from the Competition Commission of India (CCI), and the Aditya Birla group flagship firm is confident in the merits of its case.

"The Company has received a communication from the Competition Commission of India under Section 29 (1) of the Competition Act, 2002, regarding the proposed acquisition of The India Cements Ltd. The Company will be responding to the same," said UltraTech.

The southern market for grey cement, where India Cements primarily operates, is highly competitive and fragmented, with the presence of over 35 grey cement manufacturers.

"We are confident of the merits of our case," the Aditya Birla Group firm had said.