Relief news for adani Group, CCI approves acquisition!
There is relief news for the adani Group of gautam adani, the country's second richest industrialist. The Competition Commission of india (CCI) has approved Oswahro's proposal to acquire majority stake in CK Birla Group company Orient Cement Limited for Rs 8,100 crore by adani Group's cement company Ambuja Cements.
CCI said in a statement, "The proposed transaction involves the acquisition of 46.80 percent of the issued share capital of Orient Cement by the acquirer (Ambuja Cements)." The Competition Commission said that after the share acquisition, Ambuja Cements is obliged to bring an open offer to acquire up to 26 percent of the expanded share capital of Orient Cement. After this open offer, Ambuja Cements' stake in Orient Cement will increase to 72.8 percent. The Competition Commission said, "CCI has approved the proposed acquisition of up to 72.8 percent stake in Orient Cement Limited by Ambuja Cements Limited." adani Group company Ambuja Cements operates 22 integrated cement plants with 10 bulk cement terminals and 21 grinding units across the country. Orient Cement has three manufacturing plants in Telangana, karnataka and Maharashtra. In october last year, adani Group announced the acquisition of Orient Cement, increasing its dominance of Rs 8,100 crore.
Ambuja Cement is going to spend Rs 8100 crore for this acquisition. The company will complete this purchase through the funds available with it. After this acquisition, the total operational capacity of adani Cement will be 97.4 MTPA tonnes per annum and by march 2025, the company is going to increase its production capacity to 100 million. In a regulatory filing with the stock exchange, Ambuja Cement said that after the acquisition of Orient Cement, Ambuja Cement will be able to increase its production capacity in South and West india to 8.5 million tonnes per annum. Also, adani Cement's market share will increase by 2 percent. After the acquisition of Orient Cement, Ambuja Cement's annual capacity will increase to 100 million tonnes by 2025. The company has set a target to increase it to 140 million tonnes by 2028. Earlier, adani Group had also announced the purchase of Sanghi Cement Limited and Penna Cement.
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