Lafarge has announced a R1.1bn (EUR 120m) Broad-Based Economic Empowerment (BEE) deal, in line with the South African Government policy to transform the country, redress past racial inequalities and broaden the country’s economic base. Lafarge is one of the first international companies to undertake such a deal.
The value of the deal compares well with local industry benchmarks and is based on Lafarge’s strong development and performance in this market since its arrival in 1998 and its high growth potential.
Under the agreement, Lafarge will sell 26 per cent of its mining (aggregate, lime and gypsum quarries) and 10 per cent of its manufacturing (cement, ready-mix concrete and gypsum) activities in South Africa. An empowerment consortium will hold 75 per cent of the stake and Lafarge’s Historically Disadvantaged South African (HDSA) employees 25 per cent in an Employee Share Ownership Trust. The consortium will be led by two joint lead partners (Peotona Group Holdings and Motjoli Resources) with 40 per cent of the shares. An Education Trust and communities close to Lafarge’s quarries will hold respectively 53 and 7 per cent of its shares.