New Delhi, July 7 (PTI): New entity LafargeHolcim, which after the completion of its merger process may dethrone Aditya Birla Group’s UltraTech as India’s largest cement company, is unlikely to sell any of its assets in the country in the near term.
French firm Lafarge and Swiss giant Holcim had in April announced the plan for a “merger of equals” to create the world’s largest building materials making firm LafargeHolcim.
The deal is likely to be sealed during the first half of next year. The two companies had proposed to sell some of the combined assets, now totalling to 427 million tonnes (mt), to comply with the competition authorities’ requirements in some geographies.
In a statement, the two companies today revealed a list of proposed asset disposals, which represents a major part of the total assets that the they aim to divest. The list includes some operations in Europe, Canada, the Philippines, Mauritius and Brazil. India does not figure on the list.
“Both companies will continue to consider whether divestments would be necessary where there might be overlaps or depending on regulatory requirements. These proposed divestments are subject to review and further discussions with the regulatory authorities and to the agreement of our business partners when relevant,” the statement said.
In India, Holcim has controlling stakes in ACC and Ambuja Cements and their cumulative capacity is around 58mt. Lafarge has over 11mt capacity now.