The Competition Commission of India (CCI) has granted approval for ITC Limited’s acquisition of the paper and pulp manufacturing business of Aditya Birla Real Estate Limited (ABREL). With the regulatory clearance in place, the ₹3,498 crore transaction can move forward, subject to the conditions agreed upon by both companies.
Transaction Structure and Scope
The approval covers the transfer of ABREL’s paper and pulp operations to ITC as a going concern. The transaction will be carried out through a Business Transfer Agreement executed between the two parties. ABREL’s real estate activities are not part of the deal and will remain outside the scope of the acquisition.
Manufacturing Facility Covered
The acquisition includes ABREL’s pulp and paper manufacturing unit located at Lalkuan in Uttarakhand. This facility comprises production assets and supporting infrastructure used in the manufacture of paper and paperboard products and represents ABREL’s core operational base in the pulp and paper segment.
Product Portfolio
The business being transferred is engaged in the manufacture, distribution and sale of a wide range of paper and paperboard products in India. These include uncoated writing and printing papers such as creamwove, maplitho and copier paper, along with kraft paper, virgin multi-layer boards, tissue paper, cup stock and stiffener paper.
Board Approval and Next Steps
ABREL’s board had approved the divestment of its paper and pulp business in March this year. Following the CCI’s clearance, the transaction is expected to progress to the execution phase in accordance with the Business Transfer Agreement and other customary closing requirements.
Summary
The CCI has approved ITC Limited’s ₹3,498 crore acquisition of the paper and pulp manufacturing business of Aditya Birla Real Estate. The deal involves the transfer of ABREL’s Lalkuan-based pulp and paper operations as a going concern, excluding real estate activities, and is set to move ahead following regulatory clearance.
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