CCI Approves Ambuja Cements Proposal To Acquire Majority Stake In Orient Cement
The transaction comprises 46.80 percent of the issued share capital
The Competition Commission of India (CCI) has consented to the proposal of Ambuja Cements, part of the diversified Ahmedabad-based Adani Group, to acquire a majority stake in the CK Birla group firm Orient Cement Ltd for Rs.8,100 crore.
Ambuja Cements operates 22 integrated cement plants across India, 10 bulk cement terminals and 21 grinding units.
The CCI stated, “The proposed transaction comprises the acquisition of 46.80 percent of the issued share capital in the target (Orient Cement) by the acquirer (Ambuja Cements).”
This includes 37.90 percent held by the current promoter and promoter group and 8.90 percent from public shareholders.
The CCI added that the shares acquisition makes it mandatory for the acquirer to make an open offer under the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations. This is for acquisition of up to 26 percent of the expanded share capital of Orient Cement.
The open offer for an additional 26 percent stake that Adani Infra will have to make to minority shareholders of PSP Projects will make the conglomerate the single largest shareholder in the firm.
Ambuja Cements’s stake in Orient Cement will then increase to 72.8 percent, which the CCI approved.
Orient Cement has three manufacturing facilities in Telangana, Karnataka and Maharashtra. It has a distribution in 10 states.
In October 2024, billionaire Gautam Adani-led Adani Group signed a binding agreement to acquire Orient Cement. It will add 16.6 MTPA (million tonne per annum) capacity to Adani Cement, which operates through Ambuja Cements.
In June last, Adani announced the acquisition of Hyderabad-based Penna Cement for Rs.10,422 crore, adding 14 MTPA capacity to the country’s second-largest manufacturer.
Earlier, the fair-trade regulator granted clearance to Adani Infra (a unit of Adani group’s flagship firm Adani Enterprises) to acquire a stake in PSP Projects Ltd.
PSP Projects has industrial, institutional, residential and luxury projects including the Surat Diamond Bourse It had an order book of Rs.6,546 crore as of September 2024.
The CCI held, “The proposed transaction involves the acquisition by Adani Infra (India) of equity shares of PSP Projects from Prahaladbhai S Patel (seller). Public shareholders by way of an open offer, such that post-closing of the initial acquisition and open offer, the acquirer (Adani Infra) and the seller and existing promoters would hold equal shareholding.”
To consolidate its construction capabilities, in November, Adani Infra announced buying a 30.07 percent stake in the construction firm PSP Projects for Rs.685.36 crore.
The existing promoters hold a 60.14 percent interest in PSP Projects, whereas Prabhladbhai S Patel holds 47.76 percent holding. He is selling 30.07 percent.
In the last few months, Adani Group has made several acquisitions, strengthening its footprint across multiple sectors.
After the stake sale, the existing promoters and Adani Infra will each hold a 30.07 percent stake.