Earlier today, August 22nd, Aditya Birla Group firm UltraTech announced that for acquiring the cement business of Century Textiles and Industries, it has been given an approval from the fair trade regulator Competition Commission.
In a regulatory filing, Ultratech said that the CCI has given its approval for the share swap deal between the above-mentioned companies.
Quite notably, Back On May 20, UltraTech had announced that through a swap deal, it will be acquiring BK Birla Group company, Century Textile’s cement business, a move which will help the Aditya Birla Group firm to further strengthen its position as market leader in the segment.
In a statement, Ultratech went on to confirm this news by saying, “By a letter dated August 21, 2018, the Competition Commission of India (CCI) has informed the company (Ultratech) that it has approved the proposed combination under sub-section (1) of section 31 of the Competition Act, 2012.”
The statement further said that the copy of the CCI order is still awaited.
In a statement, the Aditya Birla Group firm said that “On May 20, 2018, The board of directors of UltraTech Cement(NSE 1.15 %) approved a scheme of arrangement amongst Century Textiles and Industries and its respective creditors and shareholders and creditors.
This transaction will further give UltraTech an opportunity to get a strong grip hold in the central and eastern markets, while also extending its footprint in the Southern and Western markets in India.
Having a total capacity of 11.4 mtpa (million tonnes per annum), Century Textiles has three integrated cement units in Maharashtra, Chhattisgarh and Madhya Pradesh.
It also has a grinding unit in West Bengal of 2.0 mtpa.