LafargeHolcim has continued its divestment programme with the sale of Holcim Lanka to Siam City Cement Public Company for US$ 400 million.
Holcim Lanka – based in Sri Lanka – operates one integrated plant and one grinding plant and is the country’s leading cement manufacturer, according to LafargeHolcim.
The company said the proceeds from the sale would be used to reduce its debt.
On completion of the Lafarge and Holcim merger last July, the newly formed company agreed to divest sections of its business, to avoid an overriding market share. The proposed transaction is part of the company’s US$ 3.59 billion divestment target in 2016.
LafargeHolcim said it had now secured three-quarters of the program.
The sale of Lafarge India will include its three cement plants and two grinding stations with a total capacity of around 11 million tonnes per year
The divestment of Lafarge India is subject to approval by the Competition Commission of India (CCI), which outlined its order to LafargeHolcim for the divestment of its interests in Lafarge India in February.
The company has also 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.