UltraTech to acquire 8.69% stake in Star Cement in `851 cr deal

New Delhi: Leading cement producer UltraTech Cement on Friday announced to acquire a minority stake of 8.69 per cent from the promoters of Meghalaya-based Star Cement in a deal worth Rs 851 crore, further intensifying the competition with Adani Group entity Ambuja Cements.

The development comes three days after the Aditya Birla group firm completed the acquisition of a controlling stake in India Cements Ltd, turning the south-based company into its subsidiary.

UltraTech Cement is expanding its capacity through acquisitions and capacity enhancement as it faces competition from billionaire Gautam Adani-led Adani Group’s Ambuja Cements, which is the second-largest player and is also scaling its capacity.

Both the players are snapping small cement players to consolidate their positions and achieve their targeted growth ahead of time.

This is the third acquisition of the Aditya Birla group flagship in the last two years, including India Cements, Kesoram Industries’ cement business and the UAE-based RAKWCT.

Ambuja Cements has completed the acquisition of Saurashtra-based Sanghi Industries, and Penna Industries and recently announced to acquire CK Birla group firm Orient Cement as part of its inorganic growth strategy. Besides, it has snapped small players’ facilities as My Home, and its subsidiary ACC has also acquired Asian Concretes and Cements.