India Cements shares jump 10% as CCI approves Rs 7,000-crore UltraTech acquisition deal

Shares of India Cements surged nearly 11% on December 23 after the Competition Commission of India (CCI) approved UltraTech Cement’s acquisition of a majority stake in the company. This landmark ₹7,000-crore deal represents a significant consolidation in India’s southern cement market, particularly in Tamil Nadu.

Deal Highlights:

• Transaction Structure: UltraTech Cement will acquire a 32.72% stake in India Cements from its promoters and associates for ₹3,954 crore. The deal includes a ₹3,142.35 crore open offer to acquire an additional 26% stake from public shareholders.
• Market Impact: The acquisition strengthens UltraTech’s position in the highly fragmented southern cement market, home to over 35 grey cement manufacturers.
• Regulatory Approval: The CCI’s approval, granted on December 20, follows a detailed review under Section 29(1) of the Competition Act, 2002.

The approval comes weeks after the CCI issued a show-cause notice to UltraTech, seeking clarifications on the proposed transaction. Despite competition from other players like the Adani Group, UltraTech remains optimistic about the strategic benefits of the acquisition.

This move further cements UltraTech Cement’s dominance in the industry as it looks to capitalize on synergies in one of the most competitive regions for cement manufacturing.