UltraTech Expands Its Presence: Acquires Additional Stake in UAE's RAKWCT

UltraTech Cement announced the acquisition of an additional 25% stake in RAKWCT, elevating its ownership to 54.39%. This acquisition was conducted through UltraTech Cement Middle East Investments Ltd (UCMEIL), officially making RAKWCT a subsidiary. UltraTech now commands a significant presence in the UAE cement industry.

Leading cement manufacturer UltraTech Cement has announced the acquisition of an additional 25 percent stake in UAE-based RAKWCT, increasing its total holding to 54.39 percent.

This move has officially turned RAK Cement Co for White Cement and Construction Materials PSC into a subsidiary of UltraTech's step-down firm, UCMEIL, as per a regulatory filing.

The acquisition was carried out by UltraTech Cement Middle East Investments Ltd., a wholly-owned subsidiary located in the UAE.

The offer period ran from May 28, 2024, to July 24, 2024, during which UCMEIL secured 12.50 crore shares, representing a 25 percent stake in RAKWCT, according to the Aditya Birla group firm.

Following the shareholders' meeting of RAKWCT on July 10, 2024, the final allotment of shares to UCMEIL was confirmed.

With this transaction, UCMEIL’s total shareholding in RAKWCT has climbed to 54.39 percent, making RAKWCT its subsidiary as of July 10, 2024.

Previously, on May 27, UltraTech had expressed its intention to acquire a 31.6 percent stake in RAKWCT but later revised the offer to 25 percent.

RAKWCT, incorporated in September 1980, reported a turnover of Rs 482.5 crore in CY21.

UltraTech has a consolidated capacity of 154.7 Million Tonnes Per Annum (MTPA) of grey cement, encompassing 24 integrated manufacturing units, 33 grinding units, one clinkerisation unit, and 8 bulk packaging terminals.