LafargeHolcim to sell Indian assets to Birla Corp.
Monday, August 17, 2015 - 10:09
Company enters into agreement with Birla Corporation for divestment of certain assets in India
AS part of the merger of their legacy companies, LafargeHolcim have signed a letter of agreement with Birla Corporation Ltd for the divestment of certain assets in India for an enterprise value of INR50 billion (approximately CHF750 million), subject to final approval by the Competition Commission of India (CCI).
The proceeds from the sale of the divestment package will be used to further reduce debt.
As announced in April 2015, LafargeHolcim have already received conditional clearance from the CCI for the merger. In that context, a package of assets for divestment was agreed with the CCI, comprising the Sonadih cement plant and Jojobera grinding station in eastern India.
The two plants, both currently operated by Lafarge India, have an annual cement capacity of 5.15 million tonnes.
The transaction with Birla Corporation Ltd, which will be submitted to the CCI for final approval, is also subject to other regulatory approvals and customary conditions.
LafargeHolcim say India remains an important market for the Group, and that following the divestment they will have a cement capacity of around 68 million tonnes in country.