CCI Greenlights UltraTech Cement's Acquisition Of Kesoram Cement Business
The Competition Commission of India (CCI) has given its nod to UltraTech Cement's proposed acquisition of Kesoram Cement Business from Kesoram Industries, the fair trade regulator announced on Tuesday.
Kesoram Industries, a leading player in the manufacturing of grey cement through its Kesoram Cement Business, is set to divest this segment to UltraTech Cement as part of a composite scheme of arrangement dated November 30, 2023.
According to the release, the proposed combination involves UltraTech Cement acquiring the grey cement business of Kesoram Industries.
UltraTech Cement, a publicly listed company, is renowned for its presence in the manufacture and sale of grey cement, white cement, ready-mix concrete, clinker, and building products across India. Additionally, the company provides building solutions and operates as a subsidiary of Grasim Industries.
The acquisition deal, valued at approximately Rs 7,600 crore, including debt, was announced by UltraTech Cement in November last year. Under the terms of the all-share deal, UltraTech Cement would take over the cement business of BK Birla Group's flagship company, Kesoram Industries.
Transactions exceeding a certain threshold require approval from regulatory bodies like the CCI, which are tasked with monitoring unfair business practices and ensuring fair competition in the marketplace.
With the CCI's clearance, UltraTech Cement moves forward with its strategic acquisition plan, which is expected to bolster its position in the cement industry and further enhance its market presence.
