LafargeHolcim has announced that it has entered into a letter agreement with Birla Corporation Limited.
The agreement is subject to approval by the Competition Commission of India (CCI) for the divestment of certain assets in India as part of the merger of its legacy companies for an enterprise value of INR50 billion.
The proceeds from the sale of the divestment business will be used to further reduce debt.
LafargeHolcim has received conditional clearance from the CCI for the merger. A package of assets for divestments had been agreed with the CCI which includes the Sonadih cement plant and Jojobera grinding station in Eastern India currently operated by Lafarge India. The two plants have an annual cement capacity of 5.15 million t.
The transaction with Birla Corporation Limited as a purchaser will be submitted to the CCI for approval and is subject to other regulatory approvals and customary conditions.
Adapted from press release by Joseph Green