Adani: CCI approves Adani Group to acquire majority stake in ITD Cementation
New Delhi| The Competition Commission of India on Tuesday approved Adani Group unit Renew Exim DMCC’s proposal to buy majority stake in ITD Cementation India for around Rs 5,757 crore. ITD Cementation India Limited is an engineering and construction company that carries out heavy civil, infrastructure and engineering, procurement and construction (EPC) business and has operations in India and abroad.
“The proposed deal involves the acquisition of approximately 46.64 per cent (equivalent to 8,01,13,180 shares) of the total issued and voting equity share capital of ITD Cementation India Limited on behalf of Renew Exim DMCC (acquirer)”, the Competition Commission of India (CCI) said in a release Renew Exim DMCC is registered in Dubai, United Arab Emirates, and is associated with Adani Group. It is a holding company engaged in the business of commercial enterprises and investment management and has no operations in India.
The regulator said that as per SEBI’s SAST (Substantial Acquisition and Acquisition of Shares) Regulations, Renew Exim DMCC has launched an open offer for acquisition of 4,46,64,772 full paid-up equity shares with face value of Rs 1 per, which is about 26 per cent of ITD Cementation India’s voting share capital
Overall, Renew Exim DMCC will acquire 72.64 percent stake in ITD Cementation India. In October 2024, Renew Exim DMCC has announced that it has entered into an agreement to acquire 46.64 per cent stake in ITD Cementation India from its promoters for Rs 3,204 crore. With this acquisition, an open offer has also been made by Renew Exim. Under this, it was said that if fully subscribed, it could buy an additional 26 per cent stake in an engineering and construction firm from public shareholders for Rs 2,553 crore.
Adani Group has rapidly expanded its cement business through several acquisitions. In 2022 it acquired Holcim’s Indian assets, making the group the second largest cement producer in the country. In June 2024, Adani Group announced the acquisition of Hyderabad-based Penna Cement for an enterprise value of Rs 10,422 crore.
Subsequently, the country’s second-largest cement maker announced in October that it would acquire CK Birla Group company Orient Cement at a valuation of Rs 8,100 crore as part of its expansion drive. In the industry in cement, Adani Group has come into tough competition with billionaire Kumar Mangalam Birla, whose UltraTech Cement leads the market with an annual production capacity of over 150 million tones.
