UltraTech enters race to buy Holcim’s stake in Ambuja Cement, ACC
UltraTech enters race to buy Holcim’s stake in Ambuja Cement, ACC
Cement

UltraTech enters race to buy Holcim’s stake in Ambuja Cement, ACC

UltraTech Cement of the Aditya Birla group has formally joined the race to acquire Swiss cement giant Holcim’s stake in Ambuja Cement and ACC Limited.

Gautam Adani-owned Adani Group, and Sajjan Jindal’s JSW group jumped into the race to acquire control that would instantly boost their position in the cement market.

On Wednesday, Ambuja Cements' shares opened in the green at Rs 360.80 apiece on the Bombay Stock Exchange (BSE), while the ACC scrip rose to Rs 2,207 apiece. The Aditya Birla Group is ready to divest voluntary assets of approximately 15 million tonnes per annum (mtpa), as a solution to comply with market share norms.

India’s antitrust body, the Competition Commission of India (CCI), has provided long-form merger notifications in eight out of 16 cement agreements since 2011. Of these eight, UltraTech independently had filed for five since 2013 with the CCI.

UltraTech was optimistic about getting the antitrust regulator’s green signal.

CCI lawyers are of the view that if firms can come up with possible solutions, approvals can come in as early as 30 working days. All five Aditya Birla Group cement agreements have been approved within the 30-working day period – also known as phase I approvals.

However, in phase II approvals, the regulator can take up to 210 calendar days from the time of obtaining the application to clear a proposal, if no corrective measures are provided.

Birla will volunteer a remedial plan involving divesting assets for a fast phase I approval.

Given the strong market presence of both players coupled with the oligopolistic nature of the industry, the CCI will generally concentrate on the combined market shares of parties, the extent of barriers to access in the market, and the position of their competitors in the market.

Image Source

Also read: JSW, Adani set to battle for Holcim's India cement assets

UltraTech Cement of the Aditya Birla group has formally joined the race to acquire Swiss cement giant Holcim’s stake in Ambuja Cement and ACC Limited. Gautam Adani-owned Adani Group, and Sajjan Jindal’s JSW group jumped into the race to acquire control that would instantly boost their position in the cement market. On Wednesday, Ambuja Cements' shares opened in the green at Rs 360.80 apiece on the Bombay Stock Exchange (BSE), while the ACC scrip rose to Rs 2,207 apiece. The Aditya Birla Group is ready to divest voluntary assets of approximately 15 million tonnes per annum (mtpa), as a solution to comply with market share norms. India’s antitrust body, the Competition Commission of India (CCI), has provided long-form merger notifications in eight out of 16 cement agreements since 2011. Of these eight, UltraTech independently had filed for five since 2013 with the CCI. UltraTech was optimistic about getting the antitrust regulator’s green signal. CCI lawyers are of the view that if firms can come up with possible solutions, approvals can come in as early as 30 working days. All five Aditya Birla Group cement agreements have been approved within the 30-working day period – also known as phase I approvals. However, in phase II approvals, the regulator can take up to 210 calendar days from the time of obtaining the application to clear a proposal, if no corrective measures are provided. Birla will volunteer a remedial plan involving divesting assets for a fast phase I approval. Given the strong market presence of both players coupled with the oligopolistic nature of the industry, the CCI will generally concentrate on the combined market shares of parties, the extent of barriers to access in the market, and the position of their competitors in the market. Image Source Also read: JSW, Adani set to battle for Holcim's India cement assets

Next Story
Infrastructure Urban

Global Rare Earth Supply Chains Diversify Away from China

In response to the rising global demand for rare earths critical for producing everything from electric vehicles to wind turbines, supply chains are undergoing a significant realignment away from China. Historically dominant in rare earth production, China's recent policies and geopolitical tensions have prompted Western nations and other stakeholders to seek alternative sources and bolster local capabilities. Rare earth processing involves two essential stages: initial extraction and subsequent refining into individual oxide compounds used to manufacture magnets essential in various industri..

Next Story
Infrastructure Urban

Coal India, US Firm to Explore Argentine Lithium

State-run Coal India Ltd is collaborating with a US company to explore lithium blocks in Argentina, a critical step in securing supplies of the essential battery material, according to an Indian source with direct knowledge of the matter. This initiative is part of India's participation in the US-led Minerals Security Partnership (MSP), which New Delhi joined last year to ensure a steady supply of minerals necessary to meet its zero-carbon objectives. As part of the MSP, India was invited to engage in 20-25 critical minerals projects, with four already identified by the Indian government. Indi..

Next Story
Infrastructure Energy

India's Coal Consumption Set to Surge Amid Hydroelectricity Shortfall

Amid a significant drop in hydroelectricity production caused by inadequate rainfall, India is gearing up to increase its coal consumption to satisfy rising power demands, according to S&P Global Commodity Insights. This shortfall in hydroelectric power is anticipated to perpetuate India's reliance on coal imports. During the fiscal year 2023-24, India's coal production approached the 1 billion metric ton milestone, reflecting the government's strategy to lessen dependency on imported coal. Nonetheless, the country has already imported approximately 85 million metric tons of thermal coal in 20..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000

Join us Telegram