Nirma to buy stake in LafargeHolcims Indian firm for $1.4 billion
Nirma to buy stake in LafargeHolcims Indian firm for $1.4 billion
The world's largest cement maker – LafargeHolcim will sell its assets in Lafarge India to Nirma Ltd for $1.4 billion, subject to approval by the Competition Commission of India (CCI).
Lafarge India operates three cement plants and two grinding stations with a total capacity of around 11 million tonnes per annum, the company said in a statement.
LafargeHolcim stated that the proceeds from the disinvestment will be used to reduce its debt.
“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 company stated.
Eric Olsen, CEO, stated that LafargeHolcim has a disinvestment target of CHF (Swiss Franc) 3.5 billion in 2016 and two-thirds of this target is now seen to be completed with this deal.
The group has already completed the sale of its business in South Korea and signed an agreement to divest its minority shareholding in Saudi Arabia.
It has expanded its joint-venture with SNI, its historical partner in Morocco, by merging Lafarge Ciments Maroc and Holcim Maroc to create LafargeHolcim Maroc.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.