Shares of Ultratech Cement rose by 0.21% to Rs 11,448.45, while India Cements surged by 8.22% to Rs 366.85 on the BSE.
The antitrust watchdog has unconditionally approved the primary acquisition and the open offer under section 31(1) of the Competition Act, 2002
Under the acquisition, the company will acquire 10,13,91,231 equity shares of Rs 10 each, representing 32.72% of the equity share capital of India Cements held by the promoters, members of the promoter group, and other shareholders.
In addition, the CCI also approved the company’s open offer to acquire up to 8,05,73,273 equity shares (26% of the equity share capital) at a price of Rs 390 per share from the public shareholders of India Cements.
On 28 July 2024, the company’s board had announced the acquisition of a 32.72% stake in India Cements from promoters and their associates in Rs 3,954-crore deal, which would expand its footprint in the highly competitive and fast-growing southern cement market. Besides, Ultratech had also announced Rs 3,142.35 crore open offer to acquire 26% share of India Cements from its shareholders.
The principal business of India Cements is the manufacturing and sale of cement and cement-related products.
UltraTech Cement is the cement flagship company of the Aditya Birla Group. It is the third largest cement producer in the world, outside of China, with a consolidated grey cement capacity of 154.86 mtpa.