The Competition Commission of India (CCI) has initiated a review of UltraTech Cement’s proposed acquisition of India Cements, following communication from UltraTech about the development. The company disclosed the information in an exchange filing, stating that the CCI had contacted them under Section 29 (1) of the Competition Act, 2002, regarding the deal.
UltraTech Cement, one of India’s largest cement manufacturers, expressed confidence in the merits of the acquisition, highlighting the competitive and fragmented nature of the southern grey cement market, where India Cements operates. With more than 35 manufacturers in the region, the company believes the acquisition will not stifle competition in the sector. The acquisition deal was initially announced in July, with UltraTech agreeing to purchase a 32.72% stake in India Cements for Rs 3,954 crore. This included a 28.42% stake from the company’s promoters and a 4.30% stake from Sri Saradha Logistics. As part of the deal, UltraTech has committed to ensuring that any vertical relationships between the two companies remain non-exclusive and operate at arm’s length, as per standard business practices.
While UltraTech remains optimistic about the approval process, the deal is still subject to regulatory clearances, which include the CCI’s evaluation of the potential impacts on market competition. The review process is standard for acquisitions in the Indian corporate landscape, especially in industries where significant mergers or buyouts could affect market dynamics. The acquisition of India Cements is part of UltraTech’s broader strategy to consolidate its position in the Indian cement industry. However, with CCI scrutiny in play, it remains to be seen whether the deal will face any changes or conditions before receiving final approval.
