CAM, AZB act on ITC's ₹3,500 crore acquisition of Aditya Birla Real Estate's pulp & paper unit

Cyril Amarchand Mangaldas (CAM) and AZB & Partners acted on ITC's proposed acquisition of the pulp and paper business of Aditya Birla Real Estate (formerly Century Textiles and Industries) for ₹3,500 crore.

The business, operating under the name ‘Century Pulp & Paper’ (CPP), is being acquired on a slump sale basis through a Business Transfer Agreement. The acquisition includes all associated assets, liabilities, contracts, and employees.

The firm's team advising on the transaction was led by Ramgovind Kuruppath, Partner, with assistance from Megha Krishnamurthi, Principal Associate; Pruthvi Jasani, Associate; and Rahil Mehta, Associate.

The due diligence team was also headed by Ramgovind Kuruppath, Partner, supported by Megha Krishnamurthi, Principal Associate; Nayana Dasgupta, Principal Associate; Pruthvi Jasani, Associate; Rahil Mehta, Associate; Shrudula Murthy, Associate; and Bharat Harne, Associate.

The real estate due diligence was led by Ashish Jain, Partner, with support from Karan Sharma, Principal Associate; Shorya Choudhary, Senior Associate; Kartik Adlakha, Associate; and Bhawani Rajpurohit, Associate.

The employment due diligence was led by Bishen Jeswant, Partner, assisted by Akash Mishra, PA Designate; Rachita Shah, Associate; and Jay Sharma, Associate.

The competition law advisory team was headed by Dhruv Rajain, Partner, with assistance from Ananya Mahant, Associate; Amritesh Anand, Associate; and Rasmani Raghuwanshi, Associate.

AZB & Partners advised Aditya Birla on this transaction. The transaction was led by the firm's Senior Partner Vaidyanadhan Iyer.

ITC will acquire the CPP business for a lump sum consideration of up to INR 3,500 crores on a cash-free, debt-free basis, payable upon closing, subject to adjustments outlined in the agreement. The completion of the transaction is contingent on obtaining necessary approvals, including from the Competition Commission of India (CCI).

This strategic move involves the transfer of CPP's assets, liabilities, contracts, and employees to ITC as a going concern on a slump sale basis. The completion of this transaction is contingent upon obtaining necessary approvals, including from the Competition Commission of India.

Established in 1984 and located in Lalkuan, Uttarakhand, CPP is a prominent player in the Indian paper industry with an installed capacity of 4.8 lakh metric tonnes per annum. The acquisition is expected to significantly enhance ITC's Paperboards & Specialty Papers Business by adding substantial scale and providing opportunities for capacity expansion. Additionally, the integration of CPP's operations is anticipated to offer locational advantages for efficient customer service and proximity to key raw material sources, thereby strengthening ITC's market position in both domestic and international markets

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