Revised divestment plan for Lafarge India

LafargeHolcim submit alternative divestment remedy to the Competition Commission of India

LafargeHolcim are considering a revised plan for the divestment of their interest in Lafarge India, who have an annual cement capacity of around 11 million tonnes.

The new divestment plan would require the approval of the Competition Commission of India (CCI) as an alternative remedy for the merger of the Group’s legacy companies.

LafargeHolcim say they are no longer in discussion with Birla Corporation Ltd (BCL) for the sale of the Jojobera and Sonadih cement plants in eastern India, which was announced previously. The BCL proposal involved the divestment of 5.1 million tonnes capacity by Lafarge India.

Both BCL as buyer and the sale agreement with BCL were subject to approval by the CCI along with other regulatory approvals and customary conditions.

However, due to current regulatory issues relating to the transfer of mining rights captive and critical to the two plants, LafargeHolcim were obliged to submit an alternative remedy to ensure compliance with the order, and this is now under consideration by the CCI.

LafargeHolcim say any further updates to the divestment process in India will be communicated in due course.