CCI approves Ultratech’s acquisition of Kesoram’s cement unit

The Competition Commission of India (CCI) has approved UltraTech’s acquisition of the cement business of Kesoram Industries and also the purchase of a certain stake of Shriram Investment Holdings Private Ltd by Shriram Ownership Trust.

In a statement on Tuesday, the CCI said Kesoram Industries also has businesses in rayon, transparent paper, and chemicals, which are not part of this transaction, it said.

In November last year, UltraTech had said it would acquire Kesoram’s cement business in an all-stock deal valued at Rs 5,379 crore, a move that was seen as further bolstering its hold in southern India.

Separately, the anti-trust regulator said Shriram Ownership Trust will buy a 9.44% stake in Shriram Investment Holdings (SIHL) held by APRN Enterprises and another 20% held by Piramal Enterprises (PEL).

SIHL is an unregistered core investment company with a standalone asset size of Rs 3,976 crore and an annual turnover of Rs 1,881 crore as of March 2023.

“The Shriram Group wants to increase its holding in SIHL and its financial services business by acquiring stakes from PEL and APRN. These two shareholders, being minority shareholders, expressed their interest in favour of the exit. SOT (Shriram Ownership Trust), being the existing shareholder of the SIHL, proposes to acquire the stake from the above two shareholders,” the regulator said in the statement.