UltraTech Cement has received Competition Commission of India’s (CCI) nod to acquire a majority stake in India Cements. The key approval comes less than two weeks after the regulator had issued a show cause notice to UltraTech seeking clarification on the proposed deal, that will help consolidate its market lead amid rising competition posed by Adani group, which is scaling up capacity with acquisitions.
The proposed combination envisages UltraTech Cement's (acquirer) acquisition of 32.72 per cent of the paid-up equity share capital of India Cements (target) from the promoters and members of the promoter group of India Cements and Sri Saradha Logistics. CCI 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.
UltraTech Cement is the largest manufacturer of grey cement, Ready Mix Concrete (RMC) and white cement in India.
