LafargeHolcim announces Indian divestments
By Chris Sleight17 August 2015
LafargeHolcim agreed to sell businesses including a cement plant and grinding station in Eastern India to Birla Corporation for INR 50 billion (US$ 766 million). The facilities, formerly part of Lafarge India, are being divested as part of the competition authority clearance for the Lafarge-Holcim merger.
The businesses being sold include a cement plant in Sonadih and grinding station in Jojobera, with a total capacity of 5.15 million tonnes per year. The deal is subject to approval by the Competition Commission of India (CCI).
LafargeHolcim added that it would retain a significant footprint in India in cement, aggregates and ready-mixed concrete. Following the divestment, the Group will have a cement capacity of around 68 million tonnes in India.
A statement from Birla said, “Upon completion of this transaction, Birla Corp will consolidate its position in the Eastern India cement market where demand supply scenario and outlook continue to remain buoyant.”
The company said its current production capacity is some 10 million tonnes of cement per year, with units in Rajasthan, Madhya Pradesh, Uttar Pradesh and West Bengal. The acquisition will also see it add the Concreto and PSC cement brands to its portfolio.