By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)- Newly merged world cement, aggregates and concrete firm, LafargeHolcim  on Monday announced it has entered into agreement with Birla Corporation Limited for the divestment of certain of its assets in India as part of the merger of its legacy companies for an enterprise value of INR 50 billion (approx. CHF 750 million).

LafargeHolcim says the deal is subject to approval by the Competition Commission of India (CCI) and the proceeds from the sale of the divestment business will be used to further reduce debt.

In April 2015, the world cement, aggregates and concrete firm said it received conditional clearance from the CCI for the merger. “In that context, 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,” a statement from LafargeHolcim affirmed.

According to the company, the two (2) plants have an annual cement capacity of 5.15 million tonnes.

It said the transaction with Birla Corporation as a purchaser will be submitted to the CCI for approval and is subject to other regulatory approvals and customary conditions.

India is an important market for LafargeHolcim with a balanced portfolio in cement, aggregates, and ready-mix concrete. Following the divestment, the Group will have a cement capacity of around 68 million tonnes in India.