UltraTech Cement receives CCI query on India Cements acquisition

UltraTech Cement on Friday said it has received a communication from the Competition Commission of India regarding the proposed acquisition of The India Cements.

 

The company said it has received the same under Section 29(1) of the Competition Act, 2002. The Act pertains to situations where the Commission is of the [prima facie] opinion that a combination is likely to cause, or has caused, an appreciable adverse effect on competition within the relevant market in India. In such cases, it shall issue a notice to show cause, according to the CCI website.

 

The cement maker said it "will be responding to the same. The southern market for grey cement, where ICEM primarily operates, is highly competitive and fragmented, with the presence of over 35 grey cement manufacturers. We are confident of the merits of our case."

 

In June, UltraTech announced it would acquire about a 23 per cent stake in India Cements. A month later, UltraTech entered into a second deal to acquire another 32.72 per cent stake in India Cements from the South entity’s promoters and associates.