In a significant move for India’s cement sector, the Competition Commission of India (CCI) has granted approval for UltraTech Cement’s ₹7,000 crore acquisition of a majority stake in India Cements. The approval, granted on 20 December 2024, paves the way for UltraTech Cement to expand its dominance in the highly competitive southern cement market.
Under the terms of the deal, UltraTech Cement will acquire 10,13,91,231 equity shares, constituting 32.72% of India Cements’ equity share capital. These shares are being bought from the promoters, members of the promoter group, and other shareholders of the company. Additionally, UltraTech Cement’s open offer to acquire up to 8,05,73,273 equity shares, amounting to 26% of India Cements’ equity share capital, has also been approved by CCI. This offer is priced at ₹390 per share and is aimed at the public shareholders of India Cements. This acquisition, first announced on 28 July 2024, represents UltraTech Cement’s continued growth strategy in India’s southern cement market. With this move, UltraTech is set to further consolidate its position as a leading player in the sector, expanding its footprint in one of the most rapidly growing and competitive markets in the country.
The approval comes on the heels of positive market reactions, with shares of UltraTech Cement rising by 0.21% to ₹11,448.45, while India Cements saw a significant surge of 8.22%, trading at ₹366.85 on the Bombay Stock Exchange (BSE). UltraTech Cement, the flagship cement company of the Aditya Birla Group, is the world’s third-largest cement producer outside of China. With a consolidated grey cement capacity of 154.86 million tonnes per annum (mtpa), UltraTech Cement continues to reinforce its leadership position in the global cement industry. This acquisition is poised to not only strengthen UltraTech Cement’s market share but also help India Cements scale new heights in the cement manufacturing and sales domain, ensuring the long-term growth of both companies within the industry.
