Ambuja Cements seeks CCI nod to acquire majority stake in Orient Cement

Ambuja Cements seeks CCI approval for acquiring majority stake in Orient Cement in ₹8,100-crore deal, expanding Adani Group's reach.

Billionaire Gautam Adani-led Ambuja Cements has sought approval from the Competition Commission of India (CCI) to acquire a majority stake in CK Birla group firm Orient Cement Ltd in a ₹8,100-crore deal.

According to a CCI notice, the proposed transaction is a two-stage acquisition process, initiated through two share purchase agreements (SPAs) on October 22, 2024, will see Ambuja Cements initially acquiring a 46.80% stake in Orient Cement.

This includes a 37.90% stake from the current promoter group and an additional 8.90% from certain public shareholders.

Pursuant to the acquisition of shares, it "triggers an obligation on the acquirer to make an open offer under Sebi's SAST (Substantial Acquisition of Shares and Takeovers) rules for acquisition of up to 26 per cent of the expanded share capital of the target (open offer)", according to the notice.

Assuming full acceptance of open offer, the stake of Ambuja Cements will stand at 72.8%, said a notice filed with the CCI on Friday.

In October, billionaire Gautam Adani-led Adani Group said it has signed a binding agreement for the acquisition of Orient Cement Ltd (OCL) at an equity value of ₹8,100 crore. The acquisition will add 16.6 MTPA (million tonne per annum) capacity to Adani Cement, which operates through Ambuja Cements in the sector.

Ambuja Cements, the cement and building material company of Adani Cement and is a part of the diversified Adani Group. It operates 22 integrated cement plants across India, as well as 10 bulk cement terminals and 21 grinding units.