CCI Approves UltraTech's Rs 7,078-Crore Acquisition Of India Cements
As of September, UltraTech held a 22.77% stake in India Cements.
The Competition Commission of India approved on Friday the proposed acquisition of the India Cements Ltd. by UltraTech Cement Ltd. for Rs 3,954 crore.
Earlier this month, the antitrust watchdog had sought clarifications from the two companies regarding the deal, which they responded to. The agency will issue a detailed order about its approval later, according to the CCI order that has been uploaded on its website.
The approval was the first long-form merger notification filed under the new merger control regime, which came into force on Sept. 10, with the CCI approval taking 25 days, according to a statement from J Sagar Associates, Advocates & Solicitors, which acted as the sole counsel to UltraTech.
As of September, UltraTech held a 22.77% stake in India Cements, according to the BSE.
In July, the Aditya Birla Group's flagship company had announced that it would acquire a 32.72% stake in India Cements from its promoters and their associates for Rs 3,954 crore to expand its footprint in the southern cement market, particularly in Tamil Nadu.
It had entered into share purchase agreements for a 28.42% stake from promoters Srinivasan N, Chitra Srinivasan, Rupa Gurunath and S K Asokh Baalaje and a 4.30% share from Sri Saradha Logistics.
The Aditya Birla Group flagship company's proposed shareholding after the acquisition would have increased to 55.49%, mandating it to go for the open offer, as per the SEBI regulations.
Following this, the company had announced an open offer of Rs 3,124.25 crore to acquire 26% of stake in India Cements from its shareholders. The offer was subject to regulatory approvals and will be on hold till approval from CCI.
Before this, UltraTech had acquired a non-controlling stake of around 23% in India Cements from Radhakishan Damani and his associated entities, at around Rs 1,900 crore.
Shares of UltraTech closed 2.14% lower at Rs 11,424.7 apiece on the BSE before the announcement, compared to a 1.49% decline in the benchmark Sensex. Shares of India Cements closed 0.43% down at Rs 339 apiece.
