The Competition Commission of India (CCI) has approved the proposed acquisition of up to 72.8 per cent shareholding of Orient Cement Ltd by Ambuja Cements Ltd (Adani Cement Group). Ambuja Cements Ltd operates 22 integrated cement plants across India, as well as 10 bulk cement terminals and 21 grinding units.
Orient Cement Ltd has three manufacturing facilities at Devapur (Telangana), Chittapur (Karnataka) and Jalgaon (Maharashtra), with distribution in 10 states across India. The proposed transaction comprises of the following steps:
• acquisition of 46.80 per cent of the issued share capital in the Orient Cement by the Ambuja Cements, including 37.90 per cent held by the current Promoter and Promoter Group and 8.90 per cent from certain public shareholders
• step one triggers an obligation on the Ambuja Cement to make an open offer under Regulation 3(1) and 4 of the Securities and Exchange Board of India (substantial acquisition of shares and takeovers) Regulations, 2011 for acquisition of up to 26 per cent of the expanded share capital of the Target (open offer). Assuming full acceptance of open offer, the shareholding of the Ambuja Cements Ltd will stand at 72.8 per cent.
