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CCI clears Ultratech Cement's deal to acquire two cement units of Jaiprakash Associates

The Economic Times:  April, 2015

New Delhi: The Competition Commission of India (CCI) has cleared Ultratech Cement's proposed deal to acquire two cement units of Jaiprakash Associates in Madhya Pradesh.

The Rs 5,400 crore deal is for the 2.6 million tonne plant in Bela, which also has a 25-MW captive power plant, and the 2.3 million tonne cement plant in Sidhi with a 155-MW captive power plant.

UltraTech, a part of Aditya Birla group, had also bought Jaypee Group's cement manufacturing unit in Gujarat in 2013 in a deal worth Rs 3,800 crore.

"Looking at the details of the matter, the combination would not have any adverse impact on the market," the CCI order said.

With this, UltraTech's capacity will go up to 65 million tonnes per annum, in line with the company's target of reaching 71 million tonnes per annum capacity by 2016.

Even after the latest sale, Jaypee Group will continue to be the third-largest cement manufacturer in the country with a 22 million tonne annual capacity.