New Delhi, July 11 (IANS) Multinational LafargeHolcim here on Monday said that it will be selling Lafarge India cement business to Nirma for approximately $1.4 billion as part of its divestment programme.
Nirma is a Gujarat-headquartered business conglomerate.
LafargeHolcim announces it 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, a company statement said.
Lafarge India operates three cement plants and two grinding stations with a total capacity of around 11 million tonnes per annum.
The proceeds from the divestment will be used to reduce the company's debt further, it said.
"This agreement is an important step in our CHF (Swiss franc) 3.5 billion divestment program. With this deal, two thirds of the program has been secured and the remainder of the program is well on track. 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 CEO Eric Olsen said.
LafargeHolcim will continue to operate in India through its subsidiaries ACC Ltd. and Ambuja Cements with a combined cement capacity of more than 60 million tonnes.
The transaction with Nirma will be submitted to the CCI for approval.
