LafargeHolcim has agreed the sale of its Indian operations to Nirma Limited, in a deal said to be worth around US$ 1.4 billion.
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 deal 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.
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 CHF 3.5 billion (US$ 3.59 billion) divestment target in 2016.
Eric Olsen, CEO of LafargeHolcim, said, “This agreement is an important step in our CHF 3.5 billion (US$ 3.57 billion) divestment program. With this deal, two thirds of the program has been secured and the remainder of the program 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.”
LafargeHolcim said it would continue to operate in India through its subsidiaries ACC and Ambuja Cements, with a combined cement capacity of more than 60 million tonnes and a distribution network that extends across the entire country.
LafargeHolcim has a divestment target of CHF 3.5 billion in 2016 and has already 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.