LafargeHolcim considers new Indian divestment
By Joe Malone08 February 2016
Materials manufacturer LafargeHolcim has announced it is considering a divestment of Lafarge India, which has an annual cement capacity of around 11 million tonnes.
The move comes as Lafarge Holcim seeks approval from the Competition Commission of India (CCI) for the merger of the group’s legacy companies.
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 revised plan comes after the company confirmed it is no longer in discussion with Birla Corporation Limited (BCL) for the sale of the Jojobera and Sonadih cement plants in Eastern. The BCL proposal involved the divestment of 5.1 million tonnes by Lafarge India. Both BCL as the buyer and the sale agreement with BCL were subject to approval by the CCI, along with other regulatory approvals and customary conditions.
Due to the current regulatory issues relating to the transfer of mining rights, LafargeHolcim was obliged to submit an alternative solution to the CCI to ensure compliance with the order.
The alternative solution is now under consideration by the CCI.