CCI clears UltraTech’s purchase of Century arm

UltraTech Cement, an Aditya Birla Group company, has received approval from fair trade regulator Competition Commission of India (CCI) for the acquisition of the cement business of Century Textiles and Industries.

CCI has given its approval for the share swap deal, said Ultratech in a regulatory filing.

“...the Competition Commission of India has by its letter dated August 21 informed the company that it has approved the proposed combination under the Competition Act, 2012,” Ultratech said.

On May 20, UltraTech had proposed to acquire the cement business of BK Birla Group company Century Textiles, a move which would further consolidate its position as the market leader in the segment. The board of directors of UltraTech approved a scheme of arrangement among Century Textiles and respective shareholders and creditors.

As part of the deal, the shareholders of Century Textiles will receive one share of UltraTech for every eight shares held. The enterprise value of Century’s cement business was pegged at ₹8,561 crore and UltraTech will absorb debt of ₹3,000 crore.

The transaction will provide UltraTech with an opportunity to further strengthen its presence in the East and Central markets, and extend its footprint in the Western and Southern markets.

Century Textiles has three integrated cement units of 11.4 million tonnes per annum in Madhya Pradesh, Chhattisgarh and Maharashtra and a 2 mtpa grinding unit in West Bengal.

On completion of the transaction, UltraTech’s capacity will rise to 110 mtpa, including its overseas operations, and make it the world’s third-largest cement maker excluding China.

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