UltraTech?s proposed buyout of two cement plants from Jaiprakash Associates Ltd (JAL) has received the approval of Competition Commission of India (CCI). Under the deal, Aditya Birla Group?s UltraTech Cement would acquire the two cement plants located at Bela and Sidhi in Madhya Pradesh.
For this combination, the relevant product market is defined as the market for grey cement, according to CCI order. The Bela and the Sidhi plants are integrated units with grinding capacities of 2.6 million tonne per annum (mtpa) and 2.3 mtpa, respectively. They would be acquired from JAL 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.