Lafarge announces it has reached an agreement with Elementia to combine their cement assets in Mexico. Lafarge will bring its two plants of Vito and Tula for a total capacity close to 1Mta, while Elementia will contribute the new 1Mta plant it is currently building in central Mexico.
This combination will significantly strengthen Lafarge's position in Mexico. The transaction, which involves no cash and is subject to regulatory approvals, is expected to close in 2H13, pursuant to the start up of the new plant of Elementia.
The new joint venture formed will be 47 per cent held by Lafarge and 53 per cent by Elementia, which will consolidate the joint venture’ financial results fully. The joint venture will therefore be incorporated by Lafarge as an equity affiliate.