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Monday, 16 December 2019
Markets & companies, Raw materials market

LafargeHolcim enters into agreement with Nirma for divestment of Lafarge India

Wednesday, 13 July 2016

LafargeHolcim has entered into a letter agreement with Nirma Limited for the divestment of its interest in Lafarge India for an enterprise value of approximately EUR 1.26 billion.

Eric Olsen, CEO of LafargeHolcim. Source: LafargeHolcim

Eric Olsen, CEO of LafargeHolcim. Source: LafargeHolcim

Lafarge India operates 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-mix concrete manufacturers. The proceeds from the divestment will be used to reduce debt further.

Important step of the divestment program

Eric Olsen, CEO, said: "This agreement is an important step in our EUR 3.2 billion divestment program. With this deal, two thirds of the program 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.”

Subject to approval by CCI

LafargeHolcim will continue to operate in India through its subsidiaries ACC Ltd. and Ambuja Cements Ltd. 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 Limited as a purchaser will be submitted to the Competition Commission of India (CCI) for approval.

LafargeHolcim has a divestment target of EUR 3.2 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 Lafarge Ciments Maroc and Holcim Maroc to create LafargeHolcim Maroc.

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