Sale of Lafarge India agreed
LafargeHolcim enter into agreement with Nirma Ltd for divestment of Lafarge India for US$1.4 billion
LafargeHolcim have entered into a letter agreement with Nirma Ltd, subject to approval by the Competition Commission of India (CCI), for the divestment of their interest in Lafarge India for an enterprise value of approximately US$1.4 billion.
Lafarge India operate three cement plants and two grinding stations with a total capacity of around 11 million tonnes per annum. The company also markets aggregates and is one of India’s leading ready-mixed concrete manufacturers.
The proceeds from the divestment will be used to reduce debt further.
Eric Olsen (pictured), chief executive officer, described the agreement as an important step in LafargeHolcim’s CHF3.5 billion divestment programme.
‘With this deal, two thirds of the programme has been secured and the remainder of the programme is well on track,’ he said. ‘We are confident that we will meet our target by the end of this year.
He added: ‘With the proposed buyer we have found the right partner who will be able to develop the business further in the interest of all our stakeholders.’
The transaction with Nirma Ltd as a purchaser will be submitted to the CCI for approval.
LafargeHolcim will continue to operate in India through their subsidiaries ACC Ltd and Ambuja Cements Ltd, who have a combined cement capacity of more than 60 million tonnes and a distribution network that extends across the entire country.
LafargeHolcim have a divestment target of CHF3.5 billion in 2016 and have already completed the sale of their business in South Korea and signed an agreement to divest their minority shareholding in Saudi Arabia.
The Group has also expanded its joint-venture with SNI, its historical partner in Morocco, by merging Lafarge Ciments Maroc and Holcim Maroc to create LafargeHolcim Maroc.
