CCI approved Acquisition of Cement Plants of Jaypee in Gujarat by UltraTech
CCI has approved the proposed acquisition of the cement plants of Jaypee Cement Corporation Limited in Gujarat by Ultratech Cement Limited.
The Competition Commission of India (CCI) on 23 December 2013 approved the proposed acquisition of the cement plants of Jaypee Cement Corporation Limited in Gujarat by Ultratech Cement Limited (Ultratech). As per the order, UltraTech will make acquisition of an integrated cement unit at Sewagram and grinding unit at Wanakbori in Gujarat.
UltraTech has done a deal of 3800 crore rupees with the Jaypee Cement Corporation group to acquire its facilities in Gujarat.
Jaypee Cement Corporation Limited is a wholly owned subsidiary of Jaiprakash Associates Limited (Jaypee). UltraTech Cement is part of the US 40 billion dollar Aditya Birla Group. The company has 22 cement plants in India with an installed capacity of 50.9 Million Tonnes Per Annum (MTPA).
Ultratech and Jaypee both are engaged in manufacture and marketing of different varieties of cement across India. The combined capacity of sewagram and wanakbori plants is 4.8 MTPA.
The commission made an opinion with reference to its order passed on 20 December 2013 that the proposed combination will not have an appreciable adverse effect on the competition in India. Thus it approved the proposed combination under the sub-section (1) of the Section 31 of the Act.
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