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Competition Commission of India (CCI) has cleared the proposed merger of Lafarge and Holcim on Wednesday, four months ahead of the planned move.
With this approval, the two cement giants will 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.
One plant is the Sonadih unit in Raipur district of Chhattisgarh and the other is Jojobera — a grinding unit — in Jharkhand.
In a statement, Lafarge and Holcim, said, “The divestment process will be carried out in the framework of the relevant social processes and ongoing dialogue with the employee representatives’ bodies. The divestment process will be completed subject to the closing of the merger between Lafarge and Holcim.”
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.
The closing of the planned merger is expected in July this year.
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.
With this approval, the two cement giants will 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.
One plant is the Sonadih unit in Raipur district of Chhattisgarh and the other is Jojobera — a grinding unit — in Jharkhand.
In a statement, Lafarge and Holcim, said, “The divestment process will be carried out in the framework of the relevant social processes and ongoing dialogue with the employee representatives’ bodies. The divestment process will be completed subject to the closing of the merger between Lafarge and Holcim.”
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.
The closing of the planned merger is expected in July this year.
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.
