Lafarge to sell India assets to Nirma for $1.4 bn


LafargeHolcim on Monday said it has entered into an agreement with Nirma Ltd to sell its entire 100% holding in cement maker Lafarge India for an enterprise value of $1.4 billion.

The deal will be subject to approval from the Competition Commission of India (CCI), Lafarge said in a statement posted on its website.

Lafarge India operates three cement plants and two grinding stations with a total capacity of around 11 million tonnes. 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, the statement said.

Founded by industrialist Karsanbhai Patel, the $1.1-billion Nirma is one of India’s diversified conglomerates with businesses across industrial and consumer products ranging from soaps, detergents, salt, soda ash, caustic soda, cement, packaging and other household products. The company has over 12 manufacturing facilities in India and the US.

“This agreement is an important step in our CHF 3.5 billion divestment program. With this deal, two-thirds of the programme has been secured and the remainder of the programme is well on track,” said Lafarge CEO Eric Olsen. “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.”

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