LafargeHolcim has agreed to divest its interest in Lafarge India to Nirma for US$1.4 billion. The deal is subject to approval by the Competition Commission of India.
Lafarge India operates three cement plants and two grinding stations with a total capacity of around 11 million tonnes a year. The company also markets aggregates and is one of India’s leading ready-mix concrete manufacturers. Proceeds from the divestment will be used to further reduce debt.
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Nirma is a diversified Indian conglomerate with businesses across industrial and consumer products such as soaps, detergents, salt, soda ash, caustic soda and cement.
LafargeHolcim will continue to operate in India through its ACC and Ambuja Cements subsidiaries, which have a combined cement capacity of more than 60 million tonnes and a distribution network across India.
LafargeHolcim has a divestment target of 3.5 billion Swiss francs (US$3.5 billion) in 2016. It has already completed the sale of its business in South Korea and signed an agreement to divest its minority shareholding in Saudi Arabia.
AZB & Partners is advising LafargeHolcim on the divestment. The team includes senior partner Ashwath Rau, partner Dhruv Singhal and senior associate Qais Jamal.
Rau began work on the deal while he was with Cyril Amarchand Mangaldas. His work on the transaction was taken over by Ramgovind Kuruppath. Competition partner Nisha Kaur Uberoi – who will be moving to AZB & Partners – handled the competition law aspects of the deal.
Freshfields Bruckhaus Deringer was LafargeHolcim’s international legal adviser. The team comprised partner and global M&A co-head Alan Mason (Paris), partner Arun Balasubramanian (Singapore) and associate Sophie Bauquis (London and Paris).
Partners Sanjay Asher and Bhumika Batra of Crawford Bayley & Co advised Nirma on Indian law issues.
Pinsent Masons senior partner Andrew Kerr and senior associate Joanna Jowitt acted for Nirma on international elements of the deal.
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