Khaitan cements ‘one of a kind’ acquisition

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Khaitan & Co advised Nuvoco Vistas Corporation, part of the Nirma Group, which made a 100% equity stake acquisition of Kolkata-based Emami Cement, for an enterprise value of ₹55 billion (US$760 million).

“This was a one of a kind cement acquisition deal” Khaitan partner Mehul Shah told India Business Law Journal. “The cement industry is heavily regulated and capital intensive, and hence the number of control deals in this space are minimal.”

The deal was in the form of an open bid and attracted bidders including UltraTech, Ambuja Cement, Shree Cement, Dalmia Bharat Cement and some private equity players.

“In light of the open bid, the deal timelines were small and required expertise in all aspects including mining laws, competition laws, real estate laws and tax laws,” said Shah. “Unlike a regular deal, this being an open bid, it was important for the team working on it to take a practical approach during the bid process and bring to the table the firm’s expertise and experience in advising on such assignments.”

Along with Shah, the core transaction team comprised partners Haigreve Khaitan and Ashraya Rao, principal associate Niharika Mepani, senior associate Suditi Surana and associate Murugaveni Pillai.

Shardul Amarchand Mangaldas (SAM) counselled the Emami Group. Deloitte Touche Tohamatsu India served as the financial diligence adviser and Arpwood Capital acted as financial adviser.

The transaction will significantly help Emami Group achieve its objective of becoming debt-free. Emami Cement has quickly established its presence with a strong network, to become one of the fastest-growing companies in the cement manufacturing space. Nuvoco Vistas Corporation, a Nirma Group company, is a leading manufacturer and retailer of building materials, and is among the major players in cement in eastern, central and northern India with an installed capacity of around 14 MTPA (million tonnes per annum).