ITC Ltd. has received regulatory approval for its strategic acquisition in the paper sector. The Competition Commission of India (CCI) has approved the company's proposed acquisition of the pulp and paper business of Aditya Birla Real Estate Ltd. (ABREL) for Rs 3,498.00 crore.

Regulatory Approval Received

In a regulatory filing dated December 17, 2025, ITC announced that the CCI has granted approval for the acquisition through a letter dated December 16, 2025. The approval covers the acquisition of Century Pulp and Paper (CPP) as a going concern on a slump sale basis.

About Century Pulp and Paper

Century Pulp and Paper represents a significant addition to ITC's paper portfolio. The company details include:

Strategic Business Impact

The acquisition aligns with ITC's expansion strategy in the paperboards and packaging segment. The company's paperboards and packaging division has demonstrated strong performance, generating a free cash flow of Rs 4,000.00 crore during FY20-24.

Transaction Timeline

The deal progression shows systematic regulatory compliance. ABREL's board had approved the business transfer agreement in March 2025 for the divestment. Both companies had earlier expressed confidence that the transaction would not raise competition concerns due to the highly competitive nature of the paper industry.

Market Implications

For ITC, this acquisition strengthens its position in the pulp and paper sector, complementing its existing paperboards and packaging operations. For ABREL, the divestment represents a value-unlocking exercise, allowing focus on core real estate business activities.

With CCI approval now secured, ITC can proceed with completing this strategic acquisition that enhances its manufacturing capacity and market presence in the paper industry.

A Bengal Minister has recently put forward a proposal that could have significant implications for the tobacco and pan masala industry, including major players like ITC Limited . The suggestion calls for an increase in the Goods and Services Tax (GST) rates on tobacco and pan masala products, a move that could reshape the market landscape for these goods.

Proposed GST Hike

The Bengal Minister's proposal aims to raise the GST rates specifically on tobacco and pan masala products. While the exact figures for the proposed increase have not been disclosed, any upward revision in tax rates could have far-reaching consequences for both consumers and manufacturers in this sector.

Potential Impact on ITC

ITC Limited, a diversified conglomerate with significant interests in the tobacco industry, could be one of the companies affected by this potential tax hike. As one of India's leading cigarette manufacturers, ITC's tobacco business might face challenges if the proposed GST increase is implemented.

Industry-Wide Implications

The suggested tax hike is not limited to cigarettes but extends to pan masala products as well. This broader scope indicates that the impact could be felt across various segments of the tobacco and related industries. Companies operating in these sectors may need to reassess their pricing strategies and business models if the proposal gains traction.

Government's Perspective

From the government's standpoint, increasing GST on tobacco and pan masala products could serve multiple purposes:

• Boost revenue collection
• Align with public health objectives
• Potentially discourage consumption through higher prices

Next Steps

As of now, the proposal remains a suggestion from a Bengal Minister. It would need to go through various stages of consideration and approval before any changes to the GST structure could be implemented. Stakeholders in the industry, including ITC and other tobacco and pan masala manufacturers, will likely be monitoring these developments closely.

The potential GST hike on tobacco and pan masala products underscores the dynamic nature of India's tax policies and their impact on various industries. As discussions around this proposal evolve, it will be crucial to observe how companies like ITC adapt to potential changes in the tax landscape and what it might mean for their business strategies going forward.