LafargeHolcim enters into agreement with Birla Corporation Limited for divestment of assets in India subject to CCI approval
LafargeHolcim announces that it has entered into a letter agreement with Birla Corporation Limited subject to approval by the Competition Commission of India (CCI) for the divestment of certain of its assets in India as part of the merger of its legacy companies for an enterprise value of INR 50 billion (approx. CHF 750 million). The proceeds from the sale of the divestment business will be used to further reduce debt.
As announced in April 2015, LafargeHolcim has received conditional clearance from the CCI for the merger. In that context, a package of assets for divestments had been agreed with the CCI which includes the Sonadih cement plant and Jojobera grinding station in Eastern India currently operated by Lafarge India. The two plants have an annual cement capacity of 5.15 million tonnes.
The transaction with Birla Corporation Limited as a purchaser will be submitted to the CCI for approval and is subject to other regulatory approvals and customary conditions.
India is an important market for LafargeHolcim with a balanced portfolio in cement, aggregates, and ready-mix concrete. Following the divestment, the Group will have a cement capacity of around 68 million tonnes in India.
With a well-balanced presence in 90 countries and a focus on Cement, Aggregates and Concrete, LafargeHolcim (SIX Swiss Exchange, Euronext Paris: LHN) is the world leader in the building materials industry. The Group has 115,000 employees around the world and combined net sales of CHF 33 billion (EUR 27 billion) in 2014. LafargeHolcim is the industry benchmark in R&D and serves from the individual homebuilder to the largest and most complex project with the widest range of value-adding products, innovative services and comprehensive building solutions. With a commitment to drive sustainable solutions for better building and infrastructure and to contribute to a higher quality of life, the Group is best positioned to meet the challenges of increasing urbanization.
More information is available on www.lafargeholcim.com
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