The Competition Commission of India (CCI) has granted approval for UltraTech’s acquisition of Kesoram Industries’ cement business, along with the purchase of a specific stake in Shriram Investment Holdings Private Ltd by Shriram Ownership Trust.
In its announcement on Tuesday, the CCI clarified that Kesoram Industries also operates in sectors such as rayon, transparent paper, and chemicals, which are not included in this transaction.
Last November, UltraTech announced its plans to acquire Kesoram’s cement business in an all-stock deal valued at Rs 5,379 crore, aiming to strengthen its presence in southern India.
Additionally, the CCI disclosed that Shriram Ownership Trust intends to acquire a 9.44% stake in Shriram Investment Holdings (SIHL) from APRN Enterprises and another 20% stake from Piramal Enterprises (PEL).
SIHL, an unregistered core investment company, boasts 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 aims to increase its stake in SIHL and its financial services business by acquiring shares from PEL and APRN. These two minority shareholders have expressed their interest in favor of exiting. As an existing shareholder of SIHL, Shriram Ownership Trust proposes to acquire the stake from the aforementioned shareholders,” stated the regulator in its announcement.