Lafarge announce US disposals and Mexican joint venture
Company selling aggregates assets in Georgia and joining forces with Elementia in Mexico
LAFARGE have signed binding agreements for the sale of six aggregates quarries in Georgia, in the US, for a total enterprise value of $160 million, subject to relevant approvals.
According to Lafarge, the assets being sold represented less than 1% of the company’s sales in North America in 2011 and are in a region of the US where the company is present only through its aggregates operations.
As such, the move is part of Lafarge’s intention to pursue a strategy of focusing on the most promising geographic areas where the company has integrated positions.
Meanwhile, south of the US border Lafarge have reached an agreement with Elementia to combine their cement assets in Mexico, a move that will significantly strengthen Lafarge’s position in the country.
Lafarge will contribute their two Mexican plants at Vito and Tula, which have a total capacity close to one million tonnes per annum, while Elementia will contribute a new one million tonnes per annum plant they are currently building in central Mexico.
The transaction, which involves no cash and is subject to regulatory approvals, is expected to close in the second half 2013, following to the start up of the new Elementia plant. Lafarge will hold a 47% stake in the new joint venture and Elementia will hold the remaining 53%.
