UTCEMs board has approved the acquisition of the cement division of CTIL, which has grinding capacity of 13.4mt (~11.4mt of integrated capacity, and a grinding unit of 2mt in West Bengal). We believe the acquisition value of USD106/t is attractive, given i) it is at a discount to the earlier acquisition value (of JPAs assets) by 7-8%, ii) the acquisition value is in line with UTCEMs capital cost for putting up its own capacity and iii) the acquisition value is at a deep discount to the recent bid for Binani Cement, although synergy values are different in case of Binani Cement. We believe the proposed acquisition of Century Textiles cement assets is positive as it allows UTCEM to increase its all-India capacity market share by 3pp in a very short time (nine months).