Calcutta, July 8: Birla Corporation Ltd plans to wrap up its Rs 4,800-crore acquisition of Reliance Cement by September, chairman Harsh V. Lodha said today.

The flagship of MP Birla Group, which announced the deal to acquire capacity of 5.5-million-tonnes on February 4, said the transaction was subject to "conditions precedents" and regulatory approvals.

"Lot of work has already taken place... hope to complete the deal by September," Lodha said on the sidelines of the 96th annual general meeting of the company.

Sources said the seller had met most of the conditions precedents - the conditions laid down by the buyer that must be adhered to before closure - and, hence, the deal should now be sealed. The transaction would not need the approval of the Competition Commission of India.

Reliance Cement, a subsidiary of Anil Ambani-owned Reliance Infrastructure, has three mining leases, two running mines and several prospecting licences.

"The government has provided clarity on the transfer of captive mines. Hence, we do not see any issue," Lodha said.

Before entering the Reliance deal, Birla Corp had tried to acquire two plants and mines of Lafarge. But the deal could not go through because Lafarge could not transfer the mines.

In the case of Reliance, Birla Corp is buying the entire company along with all assets, including mines, and liabilities.

Birla Corp is likely to use up to Rs 1,000-crore loan and Rs 1,400 crore internal accrual to conclude the deal.

During the AGM, shareholders questioned the sagacity of buying a loss-making business but the management strongly defended the deal.

Industry sources said Reliance lost interest in the business after it decided to exit the cement sector, leading to losses. Birla Corp, with its vast experience in cement sector, hopes to turn it around.

Birla Corp is likely to use up to Rs 1,000 crore loan and Rs 1,400 crore internal accrual to conclude the deal.

Lodha said the long-term viability of the cement business was strong and the acquisition would make Birla Corp stronger. Post acquisition, BCL's capacity will go up to 15.5 million tonnes.

This is the third consolidation move in the domestic cement. Kumar Birla-owned UltraTech is trying to acquire two-thirds of Japyee's business, while French major Lafarge has put its entire cement business on the block after failing to part sell to Birla Corp.