CCI Grants Approval for ITC's Acquisition of ABREL's Paper and Pulp Business

By siliconindia | Wednesday, 17 December 2025, 10:07 Hrs

The antitrust regulator has cleared ITC’s acquisition, removing a key regulatory hurdle for the transaction.
ABREL’s pulp and paper manufacturing facility in Uttarakhand will move to ITC under a business transfer agreement.
The divestment will allow the company to redeploy capital and concentrate on expanding its core real estate business.

The Competition Commission of India (CCI) has approved ITC Limited’s acquisition of the paper and pulp business of Aditya Birla Real Estate Limited (ABREL), clearing a major regulatory hurdle for the transaction. With the antitrust nod in place, the deal now moves into the execution phase.

The approval covers the transfer of ABREL’s pulp and paper manufacturing unit located at Lalkuan in Uttarakhand to ITC through a business transfer agreement. ABREL’s board had approved the divestment earlier this year, and the CCI clearance marks a key milestone in completing the transaction.

ABREL has said the sale will help it redirect capital and management focus toward expanding its core real estate business. Managing Director R.K. Dalmia described the move as a strategic portfolio decision aimed at unlocking shareholder value and sharpening the company’s focus as it enters a new growth phase. He added that the paper and pulp business has built a strong track record in performance and sustainability, and that ITC is well positioned to scale it further.

For ITC, the acquisition strengthens its paperboards and specialty papers portfolio. The company already operates four manufacturing plants across Andhra Pradesh, Telangana, Tamil Nadu, and West Bengal, with a combined capacity of over one million tonnes annually. The deal also follows competitive interest in the asset from other industry players.

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Under the agreement, the consideration will be paid as a lump sum, subject to customary adjustments. The transaction still requires other statutory approvals, including shareholder consent. JM Financial acted as the exclusive financial advisor to ABREL, while AZB & Partners served as legal counsel.

The divestment also aligns with the Aditya Birla Group’s broader strategy to free up capital for growth across businesses such as real estate, retail, and other emerging segments.