[Breaking News] ITC seeks CCI nod to acquire ABREL’s pulp and paper business

ITC has approached the Competition Commission of India (CCI) seeking approval to acquire Aditya Birla Real Estate Limited's (ABREL) pulp and paper undertaking, Century Pulp and Paper (CPP), for a lump-sum cash consideration of INR 3,498-crore. According to news agency reports, the transaction will be executed as a slump sale under a business transfer agreement signed between the two companies.

Established in 1984 at Lalkuan, Uttarakhand, CPP is a key player in the Indian paper industry with an installed capacity of 4.8-lakh metric tonnes-per annum. The proposed acquisition, according to filings with the CCI, will not pose any competition concerns as the market remains highly competitive.

ABREL described the divestment as a “value-unlocking exercise” that will enable the company to concentrate on its core real estate business. ITC, on the other hand, has highlighted the strong cash generation potential of its paperboards and packaging division, which delivered free cash flow of INR 4,000-crore between FY20 and FY24.

Reports also noted that ITC shares gained over 1% following news of the proposed acquisition, trading at around INR 403 apiece despite weak market sentiment.

ITC, headquartered in Kolkata, operates across multiple sectors including cigarettes, hotels, paperboards and speciality papers, packaging, FMCG products, and agribusiness. Its consolidated net profit for Q1FY26 rose 3% year-on-year to INR 5,244.20-crore, with total income up nearly 19% at INR 23,811.56-crore.