MUMBAI India’s largest cement maker UltraTech Cement has agreed to buy a 32.72 percent stake in debt-laden rival Bharat Cements. M-cap per share Rs 390. Last June 2024, UltraTech had acquired a 22.77 per cent share from investor Radhakishan Damani paying Rs1,889 crore for the stake.
The open offer in the UltraTech plan will also raise its deal value to Rs 7,100 crore. Move will help UltraTech reinforce its position in the market where it currently controls only 24 million tonnes or 23 per cent, mostly limited to western parts of India. Bharat Cements has a production capacity of 14.45 million tonnes a year This is a significant and strategic investment towards meeting our long-term growth plan of 200 MTPA capacity by 2030.
As a result of this transaction, UltraTech’s operational capacity will go up to 154.9 MTPA (million tonnes per annum), way more than next best AdaniCement which has a total installed capacity of around 60 MTPA ). This is a significant step towards enabling UltraTech to accelerate and progress further in its leadership position across the Industry. The deal is contingent on regulatory approvals and should close within six months, according to a press release.
