New Delhi: UltraTech's proposed buyout of two cements plants from Jaiprakash Associates Ltd (JAL) has got the approval of fair trade watchdog CCI, which said the deal is unlikely to have an adverse impact on competition.
Under the deal, Aditya Birla Group's UltraTech Cement would acquire the two cement plants located at Bela and Sidhi in Madhya Pradesh.
Giving its green signal, Competition Commission of India (CCI) said the "proposed combination is not likely to have an appreciable adverse effect on competition in India in any of the relevant market(s)".
For this combination, the relevant product market is defined as the market for grey cement, according to CCI order, dated April 10 and made public today.
The Bela and the Sidhi plants are integrated units with grinding capacities of 2.6 million tonnes per annum and 2.3 MTPA, respectively. They would be acquired from Jaiprakash Associates on a "going concern and on a slump exchange basis".
Ultratech has a cement production capacity of around 60 MTPA. It manufactures and sells grey cement, white cement, ready mix concrete, and other building products.
The flagship company of Jaypee Group, Jaiprakash Associates is into making and marketing of varieties of grey cement.
On January 23, Ultratech had executed an implementation agreement with Jaiprakash Associates for the proposed purchase of the two cement plants.
