Coal news and updates

LafargeHolcim sees Rs10,000 crore valuation for its cement portfolio

Franco-Swiss cement maker LafargeHolcim Ltd is expecting almostRs.10,000 crore in deal value for the entire 11 million tonnes per annum (mtpa) Indian cement portfolio it plans to sell, according to two people with direct knowledge of the matter.

Among those interested in the assets are JSW Cement Ltd, Irish building materials maker CRH Plc and private equity (PE) firm Blackstone Group LP, according to the two people and a third person familiar with the development.

LafargeHolcim on Thursday said it was considering a revised plan to sell Lafarge’s full cement capacity in India.

Informal talks on the sale of these assets have already started, according to the two people cited in the first instance.

“What is on right now is the informal discussion rounds; formal process will start only once Lafarge receives the Competition Commission of India (CCI)’s approval for the revised plan. The expected valuation for the deal is being quoted at around plus or minus of Rs.10,000 crore,” said one of the two people mentioned above.

Both spoke on condition of anonymity.

The spokespersons for LafargeHolcim, Blackstone and CRH refused to comment for this story.

CCI, the country’s antitrust regulator, had in April directed LafargeHolcim to divest Lafarge’s east India cement assets to allow for the merger between the local units of French cement maker Lafarge SA and Holcim of Switzerland.

Lafarge entered into a deal with Birla Corp. Ltd in August 2015 for its east India assets.