New Delhi:
Billionaire Gautam Adani-led Ambuja Cements has acquired C.K. in a deal worth ₹8,100 crore. Birla Group firm has sought approval from the Competition Commission of India (CCI) to acquire majority stake in Orient Cement Limited.
According to the CCI notice, the acquisition process under the proposed transaction will be in two phases, beginning with two share purchase agreements (SPAs) on October 22, 2024, in which Ambuja Cements will initially acquire 46.80 per cent stake in Orient Cement. Will do. Out of this, 37.90 percent stake will be taken from the existing promoter group and 8.90 percent stake will be taken from public shareholders.
In the course of acquisition, through this phase, the acquiring company will be obliged to make an open offer to acquire up to 26% of the expanded share capital of the target company under the SAST (Substantial Acquisition of Shares and Takeovers) rules of SEBI. .
In October itself, Gautam Adani-led Adani Group had said that it has signed a binding agreement to acquire Orient Cement Limited (OCL) for an equity value of ₹8,100 crore, which will bring Adani Cement’s capacity to 16.6 MTPA (million tonnes per annum). year), which operates in this region through Ambuja Cements. Adani Cement’s cement and construction materials company Ambuja Cements is part of the diversified Adani Group, which operates 22 integrated cement plants as well as 10 bulk cement terminals and 21 grinding units across India.
Orient Cement has three manufacturing plants in Telangana, Karnataka and Maharashtra, and distribution in 10 states across the country.
Further, Ambuja Cements has stated that the proposed acquisition of Orient Cement by Ambuja Cements does not give rise to any competition concerns, and CCI is free to keep the market definitions open.
However, for its assessment CCI has identified two relevant markets, namely the broader market covering gray cement manufacturing and sales in Telangana, Maharashtra, Karnataka, Madhya Pradesh and Gujarat, and the smaller market focused on Telangana, Maharashtra and Karnataka. .
In June this year, Adani Group had announced the acquisition of Hyderabad-based Penna Cement for an enterprise value of ₹10,422 crore, increasing the capacity of the country’s second largest producer by 14 MTPA.
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