In a development which has shocked the cement industry – Larfage South Africa’s Indian unit has made an about-face on the agreement is appeared to have firmly made to sell two of its cement units, according to a filing from an organisation that was to be a prospective buyer, Birla.
The move to divest its interests in the two units, Jojobera in the eastern Indian state of Jharkhand and Sonadih in Chhattisgarh, was part of Larfage’s compliance with antitrust laws, which are part of the terms of its Merger with Holcim. Birla, the Kolkata-based conglomerate said the two have a total annual capacity of about 5.15 million tons and own “adequate reserves” of limestone, the raw material used to make cement.
Meanwhile, in a statement, Birla said it is taking the legal route after consulting with its lawyers to contest the decision.
LafargeHolcim, which was formed in formed in July 2015, is now the world’s biggest cement maker with a market value of $25bn.
Adapted from a story published by AFP, Franck Fife