2Competition Commission of India clears UltraTech’s purchase of Cement arm of Century Textiles and I

Fair trade regulator Competition Commission of India, in a letter dated August 21, informed UltraTech Cement of approval for the acquisition of the cement business of Century Textiles and Industries. The news comes after the May 20th proposal of UltraTech to acquire the cement business of BK Birla Group company Century Textiles. This move will take UltraTech a step further in becoming the market leader in Indian cement industry. 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.

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This post has been authored by Aryan Mohindroo, a third year student of WBNUJS, Kolata.