NEW DELHI, July 28 (Reuters) - UltraTech Cement (ULTC.NS) , opens new tab, India's number one cement maker, said its board on Sunday approved a $472 million deal to gain control of India Cements (ICMN.NS) , opens new tab, which will bolster its position in the country's southern states.

The deal comes as the country's top cement makers vie to dominate a market that is expected to roughly double to $49 billion by 2029 from 2022 levels with an expected infrastructure spending boom under the government of Prime Minister Narendra Modi.

UltraTech, part of India's Aditya Birla group, will buy a 32.72% stake in India Cements from its promoters and their associates, adding to the 23% stake it bought in June.

After the June stake sale, the promoters of India Cements offered to sell their holding to the Birla group company, UltraTech said in a statement.

UltraTech will pay 39.54 billion rupees ($472.38 million) at 390 rupees per share for the 32.72% stake in India Cements, the statement said.

The acquisition will trigger a so-called open offer requirement that allows UltraTech to buy more shares from public shareholders at the same price, which was a 4.3% premium to India Cement's last close.

Markets had anticipated that UltraTech would take control of India Cements, a move that will help the Birla group meet its production target of 183.5 million metric tons by the fiscal year to March 2027, said Ashutosh Murarka, a research analyst at Mumbai-based Choice Broking.

"We expect the deal momentum in India's south to continue," he said.

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https://www.reuters.com/markets/deals/ultratech-board-approves-deal-snare-control-india-cement-2024-07-28/