UltraTech Cement approved by CCI to acquire Kesoram Cement's paraphase operations.

by Jaswinder Kaur / 21-03-2024 / comments

The Competition Commission of India (CCI) has given the green light to UltraTech Cement's proposed acquisition of Kesoram Cement Business from Kesoram Industries, marking a significant development in the Indian cement industry landscape. Kesoram Industries, known for its production of grey cement, will see its cement business taken over by UltraTech Cement as part of a composite scheme of arrangement initiated on November 30, 2023. This approval underscores CCI's role in regulating mergers and acquisitions to ensure fair competition and prevent monopolistic practices.

UltraTech Cement, a publicly listed entity and subsidiary of Grasim Industries Ltd, is a major player in India's cement market, offering a range of products including grey cement, white cement, ready-mix concrete, clinker, and building solutions. The acquisition of Kesoram Cement Business, valued at approximately ₹7,600 crore, including debt, further strengthens UltraTech Cement's position in the industry.

In addition to the UltraTech-Kesoram deal, CCI has also cleared the proposal by Shriram Ownership Trust to acquire a 29.44% stake in Shriram Investment Holdings Pvt Ltd (SIHL), an unregistered core investment company. This acquisition involves the purchase of stakes from APRN Enterprises Pvt Ltd and Piramal Enterprises Ltd, reflecting a strategic move within the financial sector.

SIHL, with assets worth ₹3,976 crore and a turnover of ₹1,881 crore as of March 31, 2023, primarily operates through investments in various subsidiaries. The regulatory approval for these transactions underscores the importance of CCI's oversight in maintaining a level playing field in the market and preventing anti-competitive behavior.

Overall, these developments highlight the dynamism of India's corporate landscape, with companies seeking strategic acquisitions to enhance their market presence while adhering to regulatory frameworks aimed at fostering healthy competition and safeguarding consumer interests.