15 , May , 2020
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 cr.
"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.
