CCI Approves UltraTech’s Acquisition of India Cements Stake
The Competition Commission of India (CCI) has granted approval for UltraTech Cement’s acquisition of a significant stake in India Cements. The deal, which was notified on December 21, 2024, will see UltraTech Cement acquire 32.7% of India Cements’ paid-up equity share capital from the company’s promoters, including members of the promoter group and Sri Saradha Logistics. In addition, UltraTech will make an open offer to acquire up to 26% more of India Cements’ shares.
The approval follows a notice issued by CCI earlier in December 2024, as part of the mandatory investigation process for corporate combinations under the Competition Act of 2002. UltraTech Cement’s move to acquire India Cements comes after a July 2024 agreement with India Cements’ vice-chairman and managing director, N Srinivasan, and his family, to buy their cement business for Rs 3,954 crore. This acquisition strengthens UltraTech’s position as a dominant player in India’s building materials sector. The deal was subject to several regulatory approvals, including that of the CCI, and now moves forward as UltraTech Cement seeks to expand its footprint in the cement industry. The strategic acquisition is expected to consolidate UltraTech’s market presence, allowing the company to leverage India Cements’ established operations and customer base. This approval marks a significant development in the competitive landscape of India’s cement industry, as UltraTech Cement continues to pursue growth through acquisitions.
