UltraTech Cement Receives Notice From CCI Regarding Acquisition Of India Cements

In a filing with the regulators, the firm said that it got the notice from the fair trade regulator, however, it remained confident in the merits of its case

UltraTech Cement received a notice from the Competition Commission of India (CCI) regarding its proposal to acquire the South-based India Cements Ltd. In a filing with the regulators, the firm said that it got the notice from the fair trade regulator, however, it remained confident in the merits of its case.

“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 Ltd. The Company will be responding to the same,” the firm said, reported PTI.

The Aditya Birla group flagship entity said, “We are confident of the merits of our case.” India Cements primarily operates in the southern market for grey cement. This market is highly competitive and fragmented with more than 35 grey cement makers present in the segment.

The regulator felt that a combination is ‘likely to cause, or has caused an appreciable adverse effect on competition within the relevant market in India’. Under the CCI Act, the body said that it shall issue a notice to show cause to the parties and urge them to respond within 15 days. 

Once it receives a response from the parties involved, the regulator said that it could also ask for a report from its probe unit, the Director General of Investigations. 

Earlier this year in July, the company announced that it would acquire a 32.72 per cent share in India Cements from promoters and their associates in a deal worth Rs 3,954 crore to expand its presence in the rapidly growing southern cement market, specifically Tamil Nadu.
It also revealed an open offer of Rs 3,142.35 crore to buy a 26 per cent stake in ICL from the shareholders.