ITC has sought the Competition Commission of India’s (CCI) permission to acquire the pulp and paper business of Aditya Birla Real Estate (ABREL) for Rs 3,498 crore, media reports said.
A notice filed with the CCI stated, “The proposed transaction refers to the sale of the target business (paper and pulp manufacturing business of ABREL) to the acquirer (ITC Ltd), as a going concern, in accordance with the business transfer agreement executed between the parties.”
Established in 1984 at Lalkuan in Nainital, Uttarakhand, Century Pulp and Paper (CPP), the pulp and paper undertaking of ABREL established in 1984, is a known player in the Indian paper industry with an installed capacity of 4.8 lakh metric tons per annum.
According to ITC and ABREL, the “proposed transaction does not raise any competition concerns within the relevant markets as the market is highly competitive, and will not cause any appreciable adverse effect on competition in the relevant markets,” the CCI notice said.
ABREL says the divestment is a value-unlocking exercise and allows it to focus on its core real estate business. ABREL’s board approved the business transfer agreement in March for the divestment.
The acquisition aligns with ITC’s strong presence in the paperboards and packaging segment, which generated a free cash flow of Rs 4,000.00 crore during FY20-24, media reports said.
ITC says the strategic move demonstrates its commitment to strengthening its position in the pulp and paper sector, while highlighting the dynamic nature of India’s corporate landscape where companies are actively realigning their business portfolios to focus on core competencies and growth areas.
