UltraTech Cement, an Aditya Birla Group company and subsidiary of Grasim Industries, has announced the acquisition of the cement business unit of BK Birla-owned Century Textiles and Industries consisting of three integrated cement plants in Madhya Pradesh, Chhattisgarh and Maharashtra and one grinding unit in West Bengal, as reported by Business Standard and Economic Times. Implemented through an all stock transaction, the deal will see UltraTech absorb Century’s debt of Rs 3,000 crores along with the issuance of one share of UltraTech for every eight shares held by the Century Textile shareholders. The enterprise value of the target Rs 8,621 crore, according to the Times of India.

Khaitan & Co acted as the Indian legal counsel to UltraTech Cement, led by its core transaction team comprising of partner Haigreve Khaitan, partner Mehul Shah, principal associate Saswat Subasit, senior associate Sanket Shah and associate D Preethika with assistance from senior associates Ritwik Kulkarni and Aman Yagnik on scheme related aspects and associate partner Shivanshu Thaplyal and associate Harshita Khurana on infrastructure, mining and other regulatory aspects.

Trilegal advised UltraTech Cement on the competition law aspects of the acquisition including drafting and filing of the forms, competition impact assessment and economic assessment and was led by the head of competition law and partner Nisha Kaur Uberoi, partner Soumya Hariharan, senior associate Atreyee Sarkar and associates Ankita Gulati, Saksham Dhingra, Mathew George and Nandini Pahari.

Vaish Associates represented Century Textiles and Industries in the transaction.

Update 1 July 2020: Bharucha & Partners advised UltraTech Cement Limited led by a team including partner Alka Bharucha, and managing associate Swathi Girimaji.

Other advisors included R.K.S Khemani along with Ramaiah K. Karumudi of SKP Business Consulting

The cement division of Century Textiles and Industries is engaged in the production, marketing and sale of cement under the brand name Birla Gold. Post the acquisition, Century will continue to retain its businesses related to the real estate sector, textiles and paper while UltraTech will have a total capacity of 109.9 million tonnes, increasing its presence in the highly fragmented, competitive and fast growing eastern and central markets and extending its footprint in the western and southern markets in India, also making it the third-largest cement player globally, after China.

2018-05-20

This deal report is based on a firm's press release and may be only partially complete. Some firms or names of advisers may be therefore be missing.