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The Competition Commission of India (CCI) approved a multi-step transaction in the cement sector involving India Resurgence Fund (IndiaRF), Shree Digvijay Cement Company (Digvijay) and Hi-Bond Cement (India) Pvt Ltd (Hi-Bond). IndiaRF will acquire a stake in Digvijay, which in turn will purchase shareholding in Hi-Bond. The two cement companies will also enter a long-term business arrangement. IndiaRF is a SEBI-registered Category II fund managed jointly by Piramal Group and Bain Capital Special Situations. The approval ensures compliance with competition regulations and aims to maintain a fair market environment.
The CCI granted clearance for a complex transaction involving IndiaRF, Digvijay and Hi-Bond. The arrangement has three interconnected elements: IndiaRF acquiring a stake in Digvijay, Digvijay acquiring shareholding in Hi-Bond, and both companies entering a long-term business cooperation. A filing with the regulator explained that the combination 'envisages the acquisition of shareholding by IndiaRF in Digvijay, the proposed long-term business arrangement between Hi-Bond and Digvijay, and the proposed acquisition of shareholding by Digvijay in Hi-Bond.' Advertisement
IndiaRF, a SEBI-registered Category II alternative investment fund, is equally owned by the Piramal Group and Bain Capital's Special Situations team. Both Digvijay and Hi-Bond manufacture and sell grey cement. Prior reports had noted that the companies had been exploring strategic collaboration, including potential exclusive distribution arrangements and other operational tie-ups, which are now formalized under this structure.
The CCI also approved a separate merger in the offshore drilling sector between ADES International Cayman and Shelf Drilling Ltd. This demonstrates the regulator's broader role in monitoring large combinations to prevent anti-competitive practices. Deals of this nature, beyond certain thresholds, require regulatory approval to ensure fair competition and to safeguard market integrity.
The deal positions Digvijay and Hi-Bond to strengthen their market presence while providing IndiaRF with a structured entry into the cement manufacturing sector. The long-term business arrangement between the two companies, combined with the shareholding transfers, will likely shape operational synergies and influence the grey cement market dynamics in India.
Source PTI
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