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.
India's antitrust watchdog, approved Ambuja Cements' acquisition of India Cements on Tuesday, months after the Adani Group company first announced the deal.
Ambuja Cements, India's second-largest cement maker, in October revealed plans to buy stake worth $451 million in Orient Cement, intensifying competition with industry leader UltraTech Cement.
Competition in the Indian cement sector has heated up recently, with UltraTech and the Adani Group companies striking a slew of deals to acquire smaller firms and expand their market share.
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.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.
Analysts had doubted Ambuja's deal would win regulatory approval, considering recent acquisitions that have led to industry oversupply. Ambuja's shares fell 2.3% on October 22 when the deal was first announced.
Since October 22, Ambuja Cements' shares have dropped about 15%, while Orient Cements' shares have fallen nearly 5%.
In recent years, Ambuja has acquired smaller rivals Sanghi Industries and Penna Cement.
Source: Reuters
