UltraTech Cement
The Competition Commission of India (CCI) on Friday approved UltraTech Cement’s deal worth over Rs 7,000 crore to acquire majority stake in India Cements. The approval came less than two weeks after the regulator issued a show cause notice to UltraTech seeking clarification on the proposed deal. The deal will help UltraTech Cement consolidate its market lead amid increasing competition from Adani Group. CCI said in a statement, “The proposed transaction proposes to acquire 32.72 per cent of the paid-up equity share capital of India Cement Limited by UltraTech Cement Limited.
Promoter stake will be acquired
The acquisition will be made from the promoters and members of the promoter group of India Cements and Shree Sharda Logistics Pvt Ltd. “Furthermore, the fair trade regulator has permitted UltraTech Cement to acquire up to 26 per cent of the paid-up equity share capital of India Cements through an open offer. Has also been approved. “The Competition Commission of India has approved the acquisition of India Cement Limited by UltraTech Cement Limited,” the competition regulator said.
Open offer of Rs 3,142.35 crore will also come
If the fair trade regulator feels that a merger or acquisition is likely to have an adverse effect on market competition in India, it issues a show cause notice under the CCI Act and asks them to respond within 15 days. UltraTech Cement had on July 28 announced the acquisition of 32.72 per cent stake in India Cements Ltd from the promoters and their associates in a deal worth Rs 3,954 crore. This will help the company expand its presence in the highly competitive and fast-growing South Indian cement market. Additionally, UltraTech has also announced an open offer of Rs 3,142.35 crore to acquire 26 per cent shares of ICL from shareholders.
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