Lafarge Holcim Bangladesh has agreed to acquire Holcim Bangladesh Ltd for a reduced price of US$62 million. The deal consolidates LafargeHolcim’s holdings in the country into one entity.
Previously known as Lafarge Surma Cement, Lafarge Holcim Bangladesh was established as a joint venture between two multinationals: Lafarge and Cementos Mollins. Holcim Bangladesh was a subsidiary of Swiss multinational, Holcim. Both companies became part of LafargeHolcim Group following the merger of Lafarge and Holcim in 2015.
Cementos Mollins also remains a shareholder in the company.
The companies had originally agreed a transaction price of US$117 million; however, the Bangladesh Bank, the country’s central bank, blocked the deal, saying it overvalued the company. It has approved the revised purchase price.
The main assets of Holcim Bangladesh are three cement grinding plants with a production capacity of 2.2 million tpy. Following the acquisition, the company will operate capacity of 4.2 million tpy, including the only clinker production facility in the country.
Read the article online at: https://www.worldcement.com/indian-subcontinent/04012018/lafargeholcim-consolidates-holdings-in-bangladesh/