UltraTech Cement proposes acquisition of 31.6% stake in UAE’s RAK Cement Co | Corporate Update

UltraTech Cement, a leading player in the Indian cement industry, has made a bold move by offering to acquire a 31.6 per cent stake in UAE-based RAK Cement Co for White Cement and Construction Materials PSC (RAKWCT). This strategic move is aimed at expanding UltraTech’s presence in the international market and strengthening its position as a global cement powerhouse.

The acquisition will be carried out by UltraTech Cement Middle East Investments Ltd (UCMEIL), a wholly-owned subsidiary of UltraTech Cement in the UAE. This move is in line with UltraTech’s vision to become a key player in the global cement industry and diversify its portfolio beyond the Indian market.

In a statement released on Monday, UltraTech Cement announced its intention to acquire 158,049,610 shares of RAKWCT, representing 31.6 per cent of the issued and paid-up share capital of the company. The offer period is set to open on 28th May 2024 and will remain open until 24th June 2024, giving shareholders ample time to consider the offer.

This acquisition is in accordance with the rules of acquisition and merger of public shareholding companies in the UAE, as stipulated by the Securities and Commodities Authority’s Board of Directors. The move is expected to strengthen UltraTech’s foothold in the international market and drive growth for the company in the coming years.

RAKWCT, incorporated in September 1980, has a strong presence in the UAE market and reported a turnover of Rs 482.5 crore in CY21. By acquiring a significant stake in RAKWCT, UltraTech Cement aims to leverage the company’s expertise and market presence to further expand its operations in the region.

UltraTech Cement, part of the Aditya Birla Group, is one of the largest cement manufacturers in India with a consolidated capacity of 138.39 Million Tonnes Per Annum (MTPA) of grey cement. The company operates 23 integrated manufacturing units, 29 grinding units, one clinkerisation unit, and 8 bulk packaging terminals, making it a dominant player in the Indian cement industry.

The acquisition of RAKWCT is expected to complement UltraTech’s existing operations and provide a platform for further growth in the international market. With a strong track record of innovation, sustainability, and customer-centric approach, UltraTech Cement is well-positioned to capitalize on the opportunities in the global cement industry and drive value for its shareholders.

Overall, the acquisition of RAKWCT represents a strategic move for UltraTech Cement to strengthen its international presence and drive growth in the competitive global cement market. The company’s commitment to excellence and innovation is expected to drive success in this new venture and create value for all stakeholders involved.