CCI Clears ITC's Strategic Acquisition of Aditya Birla's Pulp and Paper Business

The Competition Commission of India (CCI) has approved ITC Ltd's acquisition of Aditya Birla Real Estate Ltd's pulp and paper business for Rs 3,498 crore. The acquisition will enable ITC to enhance its paper segment, while Aditya Birla focuses on core real estate operations. The business is located in Lalkuan, Uttarakhand.

The Competition Commission of India (CCI) has given its approval to ITC Ltd's acquisition of Aditya Birla Real Estate Ltd's pulp and paper division, a deal valued at Rs 3,498 crore. This decision comes following Aditya Birla's announcement in March this year.

The approved acquisition involves the takeover of the pulp and paper operations located in Lalkuan, Uttarakhand, by ITC. The transaction is seen as a strategic move, enabling ITC to bolster its paperboards and packaging segment. Meanwhile, Aditya Birla aims to refocus on its core real estate business.

Established in 1984, the pulp and paper unit, known as Century Pulp and Paper, boasts an impressive annual capacity of 4.8 lakh metric tonnes and has been a significant entity in the Indian paper industry. ITC foresees continued free cash flow generation from its paper segment, which has already yielded Rs 4,000 crore during the FY20-24 period.

(With inputs from agencies.)