CCI sends notice to Ultra Tech Cement for its proposed acquistion of India Cements

The Competition Commission of India has sent a notice to UltraTech Cement for its proposed acquisition of Chennai- based India Cements, the company said in an exchange filing on Friday. The notice is under the Section 29 (1) of the Competition Act, and is generally sent if the Commission is of the opinion that the proposed merger is likely to have or has had an adverse impact on competition. UltraTech Cement has received the notice on Thursday, December 5. As per the competition act, the company will have 30 days to respond on why an investigation should not be conducted on the proposed merger. UltraTech is the largest producer of cement in the country, and first acquired a 23% “non-controlling financial stake” in India Cements in June this year. It then acquired another 32.72% stake from its promoters and associates in July. UltraTech will also make an open offer for another 26% in the company. The commission, though, can also go ahead with Phase 2 of the investigation, if it is not satisfied with the responses, he shared, requesting not to be named. India Cements, in a separate filing, also said that it has received a notice from the Competition Commission on Thursday, and is in the process of furnishing a response to the regulatory body. Before the acquisition of India Cements, UltraTech had also acquired the cement division of Kesoram Industries, which has a capacity of 10.75 million tonne in Karnataka, Telangana and Maharashtra. The deal was approved by the anti-trust body in March this year.
 

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