Ambuja Cements Secures Green Light for 72.8% Acquisition of Orient Cement

On Tuesday, March 4, India’s antitrust regulatory body, the Competition Commission of India (CCI), granted its approval for the proposed acquisition of a significant stake in Orient Cement by Ambuja Cements. The approval allows Ambuja Cements to acquire up to 72.8% of Orient Cement’s shareholding, marking a major development in the Indian cement industry.

The announcement was made through an official post by the CCI on the social media platform X (formerly Twitter). In its statement, the commission confirmed, “CCI approves the proposed acquisition of up to 72.8% shareholding of Orient Cement Limited by Ambuja Cements Limited.”

This regulatory clearance is a crucial step in the acquisition process, ensuring compliance with India’s competition laws. The deal aligns with Ambuja Cements’ expansion strategy and is expected to impact the competitive landscape of the cement sector in India. However, further details regarding the timeline and financial specifics of the transaction remain undisclosed at this stage.

According to a report by news agency Reuters, Adani Group-owned Ambuja Cements has announced its plan to acquire a substantial stake in Orient Cement as part of its strategy to strengthen its position in the Indian cement industry. The deal, valued at approximately $451 million (₹8,100 crore), is aimed at enhancing Ambuja Cements’ competitive standing against industry giant UltraTech Cement, owned by the Birla Group.

As per the official statement from the Competition Commission of India (CCI), the proposed acquisition involves Ambuja Cements acquiring 46.80% of Orient Cement’s issued share capital. This purchase will significantly increase Ambuja’s total stake in the company to 72.8%, giving it a controlling interest in the cement manufacturer.

Ambuja Cements is one of India’s major cement producers, operating a vast network of facilities across the country. Its infrastructure includes 22 integrated cement plants, 10 bulk cement terminals, and 21 grinding units. The acquisition of Orient Cement is expected to further strengthen its market presence and production capacity.

The transaction is subject to regulatory approvals and other customary closing conditions. However, with the CCI’s approval now secured, the deal has moved a step closer to completion. More details regarding the integration and future plans of the companies are yet to be disclosed.

On Tuesday, Ambuja Cements’ stock price closed at ₹474.85, marking a 0.57% increase from its previous closing price of ₹472.15. This minor gain came ahead of the announcement from the Competition Commission of India (CCI), which approved Ambuja Cements’ proposed acquisition of a majority stake in Orient Cement. The regulatory approval, however, was made public after market hours on March 4.

Over the past five years, Ambuja Cements’ stock has delivered impressive returns of over 130% to investors, reflecting strong growth and expansion efforts by the company. However, in the last one-year period, the stock has experienced a decline of 23.19%, indicating fluctuations in market performance.

Since the beginning of 2025, Ambuja Cements’ stock has declined by nearly 12% on a year-to-date (YTD) basis. The recent market movements highlight the stock’s volatility, influenced by various factors, including industry competition, macroeconomic trends, and corporate developments such as acquisitions and expansions.

On Tuesday, shares of Orient Cement ended the trading session at ₹327.50, reflecting a decline of 0.86% from the previous closing price of ₹330.35. The stock witnessed a downward movement during the session, closing lower compared to the previous day’s level.

The dip in Orient Cement’s share price came on the same day that the Competition Commission of India (CCI) approved Ambuja Cements’ proposal to acquire a majority stake in the company. However, since the regulatory approval was announced after market hours on March 4, its impact on the stock price was not immediately reflected in the day’s trading session.

The company’s stock performance is influenced by various market factors, including industry trends, investor sentiment, and corporate developments. Moving forward, market participants may closely monitor how the acquisition progresses and its potential implications for Orient Cement’s business operations and market positioning.

Over the past five years, Orient Cement’s stock has delivered significant gains, rising by more than 320%, reflecting strong growth and positive investor sentiment toward the company. In the last one-year period, the stock has continued its upward trajectory, appreciating by 42.30%, indicating sustained market confidence and performance.

However, despite these long-term gains, Orient Cement’s share price has seen some decline in 2025. On a year-to-date (YTD) basis, the stock has fallen by 5.02%, suggesting recent fluctuations in its market value. Various factors, including broader market trends, industry dynamics, and corporate developments such as mergers and acquisitions, could be influencing its short-term performance.

With the recent approval from the Competition Commission of India (CCI) for Ambuja Cements’ proposed acquisition of a majority stake in Orient Cement, investors and market participants may closely watch how this development impacts the company’s future growth prospects and stock performance.