UltraTech Cement-India Cements Stake Purchase: Aditya Birla Group Co Receives CCI Notice; Responds

Aditya Birla Group company UltraTech Cement has received a notice from the Competition Commission of India (CCI) regarding the proposed acquisition of India Cements Limited. In an exchange filing, UltraTech Cement said that the CCI notice was received on December 5.

UltraTech Cement-India Cements Stake Purchase: Latest Update

"We write to inform you that the Company has received a communication from the Competition Commission of India under Section 29 (1) of the Competition Act, 2002 regarding the proposed
acquisition of The India Cements Limited (“ICEM”). The Company will be responding to the same," UltraTech Cement said in an exchange filing.

The company further said that it is confident of the merits of the case as the southern market, where the company will be operating post-acquisition, is competitive with 35 cement players.

"The Southern Market for grey cement, where ICEM primarily operates, is highly competitive and fragmented with the presence of over 35 grey cement manufacturers. We are confident
of the merits of our case," it added.

In July, the Board of Directors of UltraTech Cement approved the purchase of 32.72 per cent of the promoters and associates in India Cements. According to the press release issued by the company on the bourses, IltraTech Cement was to pay Rs 3954 crore to buy a 32.72 per cent stake in India Cements. The company acquired the stake at a price of Rs 390 per share. 

UltraTech Cement Share Price Today

Meanwhile, the shares of UltraTech Cement closed slightly lower on Friday. After opening at Ts 11,939, the stock made an intraday high of Rs 11,956 and closed at Rs 11,848.50, down 0.71 per cent from the previous day's close. With a market cap of Rs 3,42,192 crore, UltraTech Cement is one of the largest cement manufacturers in the country.