Lafarge to pay Euro 270 mn for Baring's 14% stake in India unit

The buyout deal, which will return the Indian subsidiary to 100% ownership, is conditional upon completion of Lafarge's merger with rival Holcim

French cement maker Lafarge will pay Baring Private Equity 270 million euros ($304 million) to acquire the fund's 14% stake in Lafarge India, the company said on Monday.

The buyout deal, which will return the Indian subsidiary to 100% ownership, is conditional upon completion of Lafarge's merger with rival cement maker Holcim , the company said.

In April this year, the Competition Commission of India (CCI) cleared the proposed merger of Lafarge and Holcim. The closing of the planned merger is expected in July this year.

The two cement giants now have to sell capacities worth five million tonnes in India’s eastern parts. The package of asset divestments which the two companies agreed upon with the CCI, includes two plants of Lafarge India in the eastern market.

India is an important market for the future LafargeHolcim Group with a balanced portfolio in cement, aggregates and ready-mix concrete. The combined group will have a cement capacity of around 68 million tonnes in India.

Holcim is a global leader in the manufacture and distribution of cement and aggregates (crushed stone, gravel, and sand). Its business also includes ready-mix concrete, asphalt, and associated services.

Holcim has its presence in India through two of its subsidiaries - ACC and Ambuja Cements.

Currently, India is world's second largest cement market with a total installed capacity of about 380 million tonne. The top players - ACC, Ambuja, UltraTech, Shree Cements and India Cement, among others - control nearly half of the market share.