Australasia: banks chosen to explore sale of LafargeHolcim's operations

JPMorgan and Citi are reported to be the investment banks selected by LafargeHolcim to explore a potential sale of its New Zealand and Australia operations worth AUD 3 billion (€2.02 billion/US$2.25 billion). Neither of the banks confirmed the appointment. The latest development comes after DataRoom stated that LafargeHolcim had been contemplating a possible spin-off of its Australasian unit. Earlier, the company publicly revealed that it had plans to have assets worth AUD 6 billion globally divested in 201
March 30, 2016 Read time: 2 mins

JPMorgan and Citi are reported to be the investment banks selected by 8161 LafargeHolcim to explore a potential sale of its New Zealand and Australia operations worth AUD 3 billion (€2.02 billion/US$2.25 billion).

Neither of the banks confirmed the appointment.

The latest development comes after DataRoom stated that LafargeHolcim had been contemplating a possible spin-off of its Australasian unit. Earlier, the company publicly revealed that it had plans to have assets worth AUD 6 billion globally divested in 2016.

The move is likely to help to pay for its global merger worth US$50 billion (€44.78 billion) in 2014 that saw 725 Lafarge and 680 Holcim unite.

Advised by Credit Suisse, Adelaide Brighton is widely known as an eager buyer. Holcim Australia is estimated to be worth around AUD 2.4 billion to AUD 2.6 billion.

In a separate report Eric Olsen, LafargeHolcim's CEO, is said to appear optimistic about 2016 despite a deterioration in raw materials such as iron ore and oil.

Olsen is reported as notingthat in three to four months, the divestment of assets in India will be completed.

Backing his optimism, he explained that the slower improvement in China is being offset by increased cement purchases in nations, including Vietnam, Indonesia, the Philippines and India.

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