UltraTech Cement-India Cements Acquisition: Major Hurdle Cleared - Check Details

The Competition Commission of India (CCI) has approved UltraTech Cement's acquisition of a 32.72% stake in India Cements Ltd (ICL). The deal, valued at ₹3,954 crore, marks a significant move for UltraTech to strengthen its presence in the southern cement market, especially in Tamil Nadu.

Details of the Acquisition

UltraTech will acquire the 32.72% stake from ICL’s promoters and their associates at ₹390 per share. Prominent sellers include Srinivasan N, Chitra Srinivasan, Rupa Gurunath, SK Asokh Baalaje, and Sri Saradha Logistics. After this deal, UltraTech’s stake in ICL will exceed 55%, triggering an open offer under SEBI regulations.

Acquisition Open Announcement 

As part of the acquisition, UltraTech has announced an open offer worth ₹3,142.35 crore to acquire an additional 26% stake (8.05 crore equity shares) in ICL from public shareholders, at the same price of ₹390 per share.

UltraTech: Strategic Expansion Goals

With an installed capacity of 154.86 million tonnes per annum (MTPA) of grey cement, UltraTech Cement is India’s largest cement producer. This acquisition aligns with its goal of expanding its global footprint and achieving a capacity target of 200 MTPA, reinforcing its leadership in the industry.

UltraTech: Legal Advisors

J. Sagar Associates (JSA) acted as the sole legal advisor to UltraTech Cement in securing CCI’s approval for the acquisition.

This acquisition further solidifies UltraTech's position in the competitive cement market while paving the way for growth in the southern region of India.