ITC seeks CCI nod to acquire ABREL’s Century pulp paper biz for Rs 3,498 cr

New Delhi: ITC Ltd has sought the approval from Competition Commission of India (CCI) to acquire the pulp and paper business of Aditya Birla Real Estate Ltd (ABREL) for Rs 3,498 crore.

“The proposed transaction refers to the sale of the target business (paper and pulp manufacturing business of ABREL) to the acquirer (ITC Ltd), as a going concern, in accordance with the business transfer agreement executed between the parties,” according to a notice filed with the CCI.

According to ITC and ABRE, the “proposed transaction does not raise any competition concerns within the relevant markets as the market is highly competitive, and will not cause any appreciable adverse effect on competition in the relevant markets”, the CCI notice said.

In March, ABREL announced that its board approved the execution of the business transfer agreement for the divestment of pulp and paper undertaking situated in Lalkuan, Uttarakhand, by way of a slump sale to ITC Ltd.

“The transfer of the business will be for a lump-sum cash consideration of Rs 3,498 crore, to be paid by ITC to ABREL,” the real estate firm said.