Ultratech Gets CCI Nod For Kesoram Cement Business Acquisition
Fair trade regulator Competition Commission of India (CCI) on March 19 gave its green signal to UltraTech Cement's proposed acquisition of Kesoram Cement Business from Kesoram Industries. 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 November 30, 2023, according to a press release. The CCI said it has cleared the deal. UltraTech 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. Kesoram Industries is engaged in the manufacture of grey cement through the Kesoram Cement Business. In November 2023, 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. Kesoram Industries reported a net Loss at Rs. 48.86 crore in December 2023 down 1.83 percent from Rs. 47.98 crore in December 2022. UltraTech Cement posted a 67 percent surge in net profit at Rs 1,774.78 crore in the third quarter of FY24, beating expectations, riding on the back of robust demand for the building materials and lower operating costs.