LafargeHolcim enters agreement with Nirma to divest Lafarge India

8161 LafargeHolcim has entered into a letter agreement with Nirma subject to approval by the Competition Commission of India (CCI) for the divestment of its interest in Lafarge India for an enterprise value of approximately US$1.4 billion (approximately €1.3 billion).

Lafarge India operates three cement plants and two grinding stations with a total capacity of around 11 million tonnes/year. The company also markets aggregates and is one of India’s leading ready-mix concrete manufacturers. The proceeds from the divestment will be used to reduce debt further.

“This agreement is an important step in our CHF 3.5 billion divestment programme. With this deal, two-thirds of the programme has been secured and the remainder of the program is well on track. We are confident that we will meet our target by the end of this year. 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,” says Eric Olsen, LafargeHolcim CEO.

LafargeHolcim will continue to operate in India through its subsidiaries 4577 ACC and 4380 Ambuja Cements, with a combined cement capacity of more than 60 million tonnes and a distribution network that extends across the entire country.

The transaction with Nirma as a purchaser will be submitted to the CCI for approval.

LafargeHolcim has a divestment target of CHF 3.5 billion in 2016 and has already completed the sale of its business in South Korea and signed an agreement to divest its minority shareholding in Saudi Arabia.

The group has also expanded its joint-venture with SNI, its historical partner in Morocco, by merging 725 Lafarge Ciments Maroc and 8017 Holcim Maroc to create LafargeHolcim Maroc.