The Emami group on Thursday said a Rs 5,500-crore deal to sell its cement business to the Nirma group is subject to approval from the Competition Commission of India (CCI) and other third parties, quelling speculations that the transaction has not progressed.
On February 6, the Emami group said that to enter into an agreement with Nuvoco Vistas Corporation, part of Nirma Group, to sell 100 per cent equity in Emami Cement Ltd at an enterprise valuation of Rs 5,500 crore.
Issuing a joint statement, both Emami and Nuvoco Vistas said the deal is subject to clearances from competition regulator CCI and other approvals.
“We would like to clarify that the queries raised on the completion of the proposed transaction are completely speculative and incorrect. Completion of the proposed transaction is subject to the formalities natural and normal to such type of transactions including receipt of prior approval of the Competition Commission of India,” the two groups said in a joint statement.
“We confirm that the proposed transaction is very much on subject to the receipt of approval of CCI and other third parties,” it added.
They had received queries over the possibility of the said deal not progressing further in the backdrop of the current circumstances due to the COVID-19 pandemic, the joint statement said.
Promoters of Nirmal are selling their stake to pare group-level debt in the over 8-million tonne capacity cement business of Emami Group.
Emami Cement operates one integrated plant and three grinding units with a total capacity of around 8.3 million tonnes per annum.
Emami Cement has operation in West Bengal, Odisha, Chhattisgarh and Bihar.
Source: Economic Times