Fair trade regulator CCI on Tuesday granted approval to UltraTech Cement's proposed acquisition of Kesoram Cement Business from Kesoram Industries.
Kesoram Industries is engaged in the manufacture of grey cement through the Kesoram Cement Business.
The proposed combination relates to the acquisition of the grey cement business of Kesoram Industries Limited by UltraTech Cement Ltd pursuant to a composite scheme of arrangement dated Nov. 30, 2023, according to a release.
The Competition Commission of India said it has cleared the deal.
UltraTech is a public-listed company in and is engaged in the business of the manufacture and sale of grey cement, white cement, ready-mix concrete, clinker, and building products in India.
The company is also engaged in the provision of building solutions in India. It is a subsidiary of Grasim Industries Ltd.
In November last year, UltraTech Cement announced it was set to acquire the cement business of BK Birla Group's flagship company Kesoram Industries in an all-share deal, with a business valuation of approximately Rs 7,600 crore, including debt.
In another release, CCI said it has also approved the Shriram Ownership Trust's proposal to acquire a 29.44% stake in Shriram Investment Holdings Pvt Ltd.
Shriram Investment Holdings Pvt Ltd. is an unregistered core investment company.
The proposed combination relates to the acquisition by Shriram Ownership Trust of 9.44% and 20% stake of Shriram Investment Holdings Pvt Ltd. held by APRN Enterprises Pvt Ltd. (APRN) and Piramal Enterprises Ltd., respectively, as per the release.
SIHL has a standalone asset size of Rs 3,976 crore and a turnover of Rs 1,881 crore as of March 31, 2023.
It does not have any business of its own except investments in various companies, most of which are 100% subsidiaries of SIHL.
The deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.
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