Ambuja Cements Seeks CCI Nod for Rs 8,100 Crore Orient Cement Acquisition

Ambuja Cements, led by billionaire Gautam Adani, has filed with the Competition Commission of India (CCI) to gain a controlling stake in CK Birla’s Orient Cement Ltd for Rs 8,100 crore. This acquisition will be executed in two phases, beginning with a 46.8% stake purchase comprising 37.9% from Orient Cement’s promoters and 8.9% from public shareholders.

The transaction will also involve an open offer under SEBI’s SAST regulations for up to 26% of Orient Cement’s expanded share capital, potentially bringing Ambuja Cements’ ownership to 72.8%. Adani Cement, operating through Ambuja Cements, signed a binding agreement for this deal, which would add 16.6 MTPA capacity to its operations.

Ambuja Cements currently operates 22 cement plants, 10 bulk terminals, and 21 grinding units nationwide. Orient Cement, with facilities in Telangana, Karnataka, and Maharashtra, serves ten states, expanding Ambuja’s footprint in key markets. The proposed deal, as stated by Ambuja Cements, does not trigger competitive concerns, and CCI’s assessment spans grey cement markets across Telangana, Maharashtra, Karnataka, Madhya Pradesh, and Gujarat.

Further, the companies reported minor vertical linkages for supplies like limestone, fly ash, clinker, and ready-mix concrete, which pose no competition risks. Earlier, in June, Adani acquired Hyderabad-based Penna Cement for Rs 10,422 crore, adding 14 MTPA to its portfolio.

This acquisition aligns with Adani’s goal of reinforcing Ambuja’s market position and boosting India’s second-largest cement capacity through strategic expansion.