.png)
The Competition Commission of India (CCI) has approved the proposed acquisition of a 72.8 per cent stake in CK Birla Group's Orient Cement by Ambuja Cements. This move follows the October announcement by the Adani Group, led by billionaire Gautam Adani, that it had entered into a binding agreement to acquire Orient Cement Ltd (OCL) for an equity value of Rs 8,100 crore.
The acquisition will significantly boost Adani Cement's capacity by adding 16.6 million tonnes per annum (MTPA) through its subsidiary, Ambuja Cements. The transaction is structured as a two-stage acquisition process, beginning with Ambuja Cements purchasing a 46.8 per cent stake in Orient Cement, including 37.9 per cent from the current promoter group and 8.9 per cent from public shareholders. Ambuja Cements operates 22 integrated cement plants and numerous grinding units nationwide.
Orient Cement, which has three manufacturing plants in Telangana, Karnataka, and Maharashtra, distributes its products in 10 states across India. Ambuja Cements assured that the acquisition would not lead to any competition concerns, with the CCI maintaining flexibility in its market definition.
As part of its assessment, the CCI identified two relevant markets, a broad market for grey cement in Telangana, Maharashtra, Karnataka, Madhya Pradesh, and Gujarat, and a narrower market covering Telangana, Maharashtra, and Karnataka. This approval comes after the June 2024 announcement by Adani to acquire Penna Cement for Rs 10,422 crore, adding 14 MTPA to the group's capacity and solidifying its position as the second-largest cement manufacturer in India.
