Deal to sell cement business to Nirma has not fallen, says Emami

On February 6, the Emami group said that to enter into an agreement with Nuvoco Vistas Corporation, part of Nirma Group, to sell 100 percent equity in Emami Cement Ltd at an enterprise valuation of Rs 5,500 crore.

PTI

May 14, 2020 / 05:52 PM IST

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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 percent equity in Emami Cement Ltd at an enterprise valuation of Rs 5,500 crore.

Issuing a joint statement, both Emami and Nuvoco Vistas said the deal is subject to clearances from competition regulator CCI and other approvals.

"We would like to clarify that the queries raised on the completion of the proposed transaction are completely speculative and incorrect. Completion of the proposed transaction is subject to the formalities natural and normal to such type of transactions including receipt of prior approval of the Competition Commission of India," the two groups said in a joint statement.

"We confirm that the proposed transaction is very much on subject to the receipt of approval of CCI and other third parties," it added.

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