<article><a style="color: #000080;" href="http://www.dealstreetasia.com/?s=LafargeHolcim">LafargeHolcim</a> has entered into an agreement with<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=+Nirma+Ltd"> Nirma Ltd</a> to sell 100% stake in <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Lafarge+India+Pvt.">Lafarge India Pvt.</a> Ltd for $1.4 billion.</article>

<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=LafargeHolcim">LafargeHolcim</a> has entered into an agreement with<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=+Nirma+Ltd"> Nirma Ltd</a> to sell 100% stake in <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Lafarge+India+Pvt.">Lafarge India Pvt.</a> Ltd for $1.4 billion.
“LafargeHolcim has entered into a letter agreement with Nirma Limited subject to approval by the Competition Commission of India (CCI) for the divestment of its interest in Lafarge India for an enterprise value of approximately $1.4 billion,” the world’s largest cement producer said in a statement on Monday.
Lafarge India operates three cement plants and two grinding stations with a total capacity of around 11 million tonnes per annum. The company added that the proceeds from the divestment will be used to reduce debt.
In its statement, the company said LafargeHolcim will continue to operate in India through its subsidiaries <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=ACC+Ltd">ACC Ltd</a> and <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Ambuja+Cements+Ltd">Ambuja Cements Ltd</a> with a combined cement capacity of more than 60 million tonnes and a distribution network that extends across the entire country.
In April 2015, LafargeHolcim was directed to sell around 5 million tonne of its east India assets in order to comply with competition rules in India. This was needed so that the erstwhile Holcim and Lafarge SA could conclude their global merger and start operating as a single entity in India. In August 2015, the company agreed to sell its east India cement assets to <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Birla+Corp.+Ltd">Birla Corp. Ltd</a> for Rs.5,000 crore. However, the deal was called off in February this year due to regulatory hurdles over the transfer of mining rights with these assets, which was not permitted at the time under the provisions of the Mines and Minerals (Development and Regulation) Act. The act was amended to follow for such transfers in March.
LafargeHolcim had, however, restarted the process to sell its entire 100% stake in Lafarge India even before the amendment. The sale had evinced interest from a number of bidders as it was seen as the largest big chunk of cement capacity likely to come up for sale. JSW Cement Ltd and Piramal Group were two of the other Indian bidders who had expressed interest in these assets along with a couple of foreign cement companies and private equity funds.
The deal has now been bagged by Nirma, promoted by Ahmedabad-based Karsanbhai Patel. The group has about 18,000 employees, with an annual turnover of more thanRs.7,000 crore, according to the company’s website.
Also read:
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/jsw-cement-nirma-among-bidders-for-lafarge-assets-46461/">JSW Cement, Nirma, Cemex among bidders for Lafarge India assets</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/lafargeholcim-to-go-ahead-with-asset-sale-as-dalmia-withdraws-plea-40242/">India: LafargeHolcim to go ahead with asset sale as Dalmia withdraws plea</a>
<h4 style="text-align: justify;">This story was first published on <a href="http://www.livemint.com/Companies/hGXG78x0Jqvbo8iS1eokPP/Nirma-to-buy-Lafarge-India-assets-from-LafargeHolcim-at-14.html">livemint.com</a></h4>

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Nirma to buy Lafarge India assets for $1.4b

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Nirma to buy Lafarge India assets for $1.4b

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