The world’s largest cement maker LafargeHolcim has agreed to sell its Indian business Lafarge India to Nirma Ltd. for an enterprise value of around $1.4 billion. The company has signed in to agreement with Nirma Ltd to sell all of their stakes of Lafarge India. The French cement major Lafarge remain successful in its second attempt to sell its Indian assets so that it can complete its global merger with Swiss cement giant Holcim.Also Read - TCS appoints two new independent directors
LafargeHolcim in a statement on Monday said “LafargeHolcim has entered into a letter agreement with Nirma Limited subject to approval by the Competition Commission of India (CCI) for the divestment of its interest in Lafarge India for an enterprise value of approximately $1.4 billion,” Also Read - Ambuja Cement Q3 up 12.7% to Rs 396.01 cr
Lafarge India’s divestement will be used to reduce debts of LafargeHolcim.The company has three cement plants and two grinding station which produces a total capacity of 11 million tonnes every year. The company stated it will continue to operate in India through subsidaries ACC Ltd and Ambuja Cements Ltd with a combined cement capacity of more than 60 million tonnes (ALSO READ: Birla Corp in Rs 5,000 crore deal with Lafarge for cement units) Also Read - Ambuja Cements Q1 profit rises 29% to Rs 514.34 crore
The company’s Indian stakes sale drew attention of many bidders as it is one of the biggest cement producers and they had put their 100% stakes out to be bid. The deal was bagged by Nirma, promoted by Karsanbhai Patel. According to the company website, Nrima group currently has 18000 employees and an annual turnover of more than Rs 7000 crore.