The Competition Commission of India has approved Ambuja Cements's proposed acquisition of up to 72.8 per cent shareholding in Orient Cement.

Ambuja Cements, a leading manufacturer of grey cement, produces Ordinary Portland Cement (OPC), Pozzolona Portland Cement (PPC), and Pozzolona Composite Cement (PCC). The company, along with its subsidiaries, operates 22 integrated cement plants, 10 bulk cement terminals, and 21 grinding units across India.

Orient Cement specializes in the production of grey cement, including PPC and OPC. The company operates three manufacturing facilities in Devapur (Telangana), Chittapur (Karnataka), and Jalgaon (Maharashtra), with a distribution network spanning 10 states.

The acquisition process involves two key steps. First, Ambuja Cements will acquire a 46.80 per cent stake in Orient Cement, which includes a 37.90 per cent shareholding from the existing Promoter and Promoter Group, along with 8.90 per cent from certain public shareholders. This transaction will trigger an open offer obligation under the Securities and Exchange Board of India's (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

In the second phase, Ambuja Cements will make an open offer to acquire up to 26 per cent of the expanded share capital of Orient Cement. If the offer is fully accepted, Ambuja Cements' total shareholding in Orient Cement will reach 72.8 per cent.

A detailed order from the Competition Commission of India will be issued in due course.

News source: PIB