LafargeHolcim considering revised divestment plan in India

LafargeHolcim considering revised divestment plan in India
04 February 2016

LafargeHolcim confirmed today that it is considering a divestment of its interest in Lafarge India with a cement capacity of around 11Mta. The divestment would require the approval of the Competition Commission of India (CCI) as an alternative remedy for the merger of the group’s legacy companies.

The company said  in a statement that it is no longer in discussion with Birla Corporation Limited (BCL) for the sale of the Jojobera and Sonadih cement plants in eastern India announced last year. The BCL proposal involved the divestment of 5.1Mta of capacity by Lafarge India. Both BCL as buyer and the sale agreement with BCL were subject to approval by the CCI along with other regulatory approvals and customary conditions. "Due to the current regulatory issues relating to the transfer of mining rights captive and critical to the two plants, LafargeHolcim was obliged to submit an alternate remedy to the CCI to ensure compliance with the order," the statement said.

LafargeHolcim added that an alternative option is now under consideration by the CCI. "The Group remains in dialogue with the CCI and will communicate any further updates to the divestment process in India in due time," it said.

Published under Cement News