The Competition Commission of India has approved the merger of cement giants Lafarge and Holcim on the basis that Lafarge will divest one cement plant and one grinding station in Eastern India. The total production capacity of the two units is 5 million tpy, leaving LafargeHolcim with 68 million t of cement production capacity in India once the merger is finalised.
The divestment process will be carried out in the framework of the relevant social processes and ongoing dialogue with the employee representatives’ bodies. The divestment process will be completed subject to the closing of the merger between Lafarge and Holcim.
The closing of the planned merger is expected in July 2015.
The Financial Express is reporting that the Competition Commission of India has written to Holcim and Lafarge requesting the divestment of assets in eastern India.
Lafarge has extended the closing date for the MTO applicable to minority shareholders of Ashaka Cement in Nigeria, and is reportedly buying back a <15% stake in Lafarge India.