The Competition Commission of India (CCI) has granted approval for UltraTech Cement Limited’s acquisition of India Cements Limited (ICL). This decision marks a significant step in UltraTech’s strategy to expand its footprint in the competitive southern cement market, particularly in Tamil Nadu.
Earlier this year, UltraTech Cement announced plans to acquire a 32.72% stake in India Cements from its promoters and associates for Rs 3,954 crore. The company also initiated a Rs 3,142.35 crore open offer to acquire an additional 26% stake from ICL’s shareholders.
The southern cement market, where India Cements operates, is known for its fragmentation, with over 35 grey cement manufacturers. Despite the challenges, UltraTech expressed confidence in the merits of its case, stating that the acquisition aligns with its growth strategy.
The approval by CCI follows a thorough review of the acquisition under Section 29 (1) of the Competition Act, 2002. UltraTech Cement, a flagship firm of the Aditya Birla Group, views this acquisition as a key move to strengthen its position in the southern region’s highly competitive cement industry.
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