The Competition Commission of India (CCI) has issued a notice to a leading cement producer regarding its proposed acquisition of another cement company. The notice, sent under Section 29(1) of the Competition Act, indicates that the Commission believes the merger could have an adverse impact on market competition.

The acquiring company received the notice on December 5 and has 30 days to respond, explaining why a full investigation should not be conducted. Earlier, the company had acquired a non-controlling stake in the target firm, followed by a larger stake from its promoters and associates, and plans to make an open offer for an additional portion of shares.

The target company has also acknowledged receiving the notice and is preparing its response to the regulatory authority. Previously, the acquiring firm had obtained approval for the acquisition of another cement division with a capacity of 10.75 million tonnes across multiple states.

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