Mergers, Acquisitions and Takeovers Case Study

Ultra Tech - Acquisition of L&T Cement by Grasim

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Abstract:
Grasim, a leading Indian business group, has acquired the majority stake in Ultra Tech Cement Co Ltd (Ultra Tech), the new identity for the de-merged cement business of Larsen & Toubro (L&T). With this, Ultra Tech has become a subsidiary of Grasim. The acquisition which took two years to complete, is the biggest ever in the Indian cement industry. Grasim believes the merger will help it to attain economies of scale and enjoy a pricing advantage. On the other hand, L&T hopes the de-merger will sharpen its focus on its core business areas such as hi-tech engineering and high-end construction. Will Grasim be able to exploit the full potential of the deal?

Pedagogical Objectives:

• To discuss the trends and patterns in building material industry
• To discuss the merger and acquisition process in building material industry
• To discuss the process of acquisition and problems of acquisition.

Keywords : Mergers,Acquisitions,Alliances Case Study;Larsen & Toubro (L&T); Grasim Industries Ltd; Kumar Mangalam Birla; Ultra Tech Cement Co Ltd; Acquisition; Merger; Raymond Cement; Lafarge; Ultra Tech ChemCo Ltd; Birla Plu; Birla Super; Strategic acquisitions; Indian cement industry; Distribution network; L&T Cement

Contents : 
Industry Scenario
Grasim Industries Limited
Larsen and Toubro Ltd
Grasim – L&T: The Cementing Act
Ultra Tech: A Win-Win Proposition
Ultra Tech: The New Brand
Major acquisitions in Indian Cement Industry
World’s top 10 Cement Co’s