Shearman & Sterling represented Fortune 500 Indian metals powerhouse – the Aditya Birla Group –in the restructuring of its cement business (ranked the ninth largest in the world).

The first phase required the cement business of Grasim Industries, a flagship company of the Aditya Birla Group, to demerge into Smaruddhi Cement, a subsidiary of Grasim. In the second phase,  Samrruddhi Cement was amalgamated with UltraTech Cement, another Aditya Birla group entity. Upon completion of the restructure, the cement business will be consolidated into UltraTech, a pure-play cement company.

In July 2004, Grasim acquired a majority stake and management control in UltraTech Cement – one of the largest acquisitions of its kind in the cement sector –catapulting the Aditya Birla Group to a market leading position in India.

The restructuring was subject to Indian law and involved US securities law issues as the group entities involved had US shareholders as well as depositary facilities.

Hong Kong capital markets partner Matthew Bersani led the Shearman & Sterling team, working with counsel Sidhartha Bhasin (Hong Kong, M&A).

Aditya’s Indian counsel was Amarchand & Mangaldas & Suresh A Shroff & Co , led by Nivedita Rao.
The Aditya Birla group has a market cap of US$31.5bn.

The deal value has been kept confidential.ALB

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