This story is from July 11, 2016
LafargeHolcim Ltd
, the world's largest cement maker, today said it will sell its stake inLafarge India to Nirma Ltd
for an enterprise value of about USD 1.4 billion. Lafarge India operates three cement plants and two grinding stations with capacity of about 11 million tonnes a year. "LafargeHolcim announces it has entered into a letter agreement withNirma
Ltd... for the divestment of its interest inLafarge India
for an enterprise value of approximately USD 1.4 billion," the company said in a statement. Lafarge India also markets aggregates and is one of the country's leading ready-mix concrete manufacturers. "The proceeds from the divestment will be used to reduce debt further," the statement said. LafargeHolcim will continue to operate in India through its subsidiariesACC
and Ambuja Cements, which have a combined cement capacity of more than 60 million tonnes and a distribution network that extends across the country. "This agreement is an important step in our 3.5 billion Swiss franc (USD 3.56 billion) divestment programme. "With this deal, two thirds of the programme have been secured and the remainder 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," CEOEric Olsen
said. The deal is subject to the approval of the Competition Commission of India. LafargeHolcim has a divestment target of 3.5 billion Swiss franc in 2016 and has already completed the sale of its business inSouth Korea
and signed an agreement to divest its minority shareholding in Saudi Arabia. TheGroup
has also expanded its joint-venture withSNI
, its historical partner inMorocco
, by mergingLafarge Ciments Maroc
andHolcim Maroc
to createLafargeHolcim
Maroc. ANZ ANU