CCI approves Nuvoco Vistas acquisition of Emami Cement
- The Competition Commission of India (CCI) has approved acquisition of 100% of the total issued and paid up share capital of Emami Cement Limited (ECL), on a fully diluted basis, by Nuvoco Vistas Corporation Limited (NVCL).
- The proposed combination pertains to the acquisition of 100% of the total issued and paid up share capital of Emami Cement Limited (“ECL”), on a fully diluted basis by Nuvoco Vistas Corporation Limited (“NVCL”).
- NVCL is a Nirma promoter group company and currently operates cement manufacturing units in the states of (i) Chhattisgarh, (ii) Jharkhand, (iii) West Bengal, (iv) Rajasthan and (v) Haryana.
- It is stated to be engaged in the businesses of manufacturing and sale of variety of grey cements including Portland Pozzolana cement, Portland Slag cement and Ordinary Portland cement.
- It is also engaged in the sale of certain other value-added products like construction chemicals, wall putty, and cover blocks.
- ECL is a part of the Emami group and owns and operates cement manufacturing units in the states of (i) West Bengal, (ii) Chhattisgarh, (iii) Bihar and (iv) Odisha. It is stated to be engaged in the manufacturing and sale of variety of grey cements including Portland Pozzolana cement, Portland Slag cement, Ordinary Portland cement and plain cement concrete i.e. composite cement. It also manufactures and sells small quantities of clinker and ground granulated blast furnace slag.
- Taking forward its commitment to buy Emami Cement, Nuvoco Vistas had deposited Rs 250 crore in an escrow account in March 2020 as break fee.
- The Emami group and Nuvoco had signed a deal to open the account with Kotak Bank. The amount was being paid to show ‘Nuvoco’s commitment’ to finalise the agreement, which it signed with Emami in February 2020 for acquisition of the cement assets.
- Nuvoco Vistas Corp. Ltd. (formerly Lafarge India Limited) has been a part of the Indian construction landscape since 1999. We operate across two broad business divisions: Cement and its value added services; and Ready Mix Concrete (RMX) & Aggregates; and place the customer at the heart of all our endeavours.
- Founded – 1999
- Headquarters- Mumbai, Maharashtra
- Chairman– Hiren Patel
About ECL –
- Founded – 1974
- Registered Office– Kolkata, West Bengal
- Whole-time Director and Chief Executive Officer(CEO)- Vivek Chawla