LafargeHolcim gets bids worth up to USD 789m from CRH, HeidelbergCement India, and Baring PE Asia for its cement assets at Chhattisgarh and Jharkhand in India
Newly created cement giant LafargeHolcim [EPA:LHN] has received binding offers from three suitors for buying its cement assets in Chhattisgarh and Jharkhand, India, mint reported. The three suitors were identified as Ireland's CRH [LON: CRH], HeidelbergCement India [BOM: 500292], and also Baring Private Equity Asia.
Two sources with knowledge of the development were cited for this information. According to one of the sources, offers ranged in price for INR 41bn (USD 647m) to INR 50bn (USD 789m), adding that the final round of talks with suitors has already been initiated.
Combined, the cement assets on the block have a capacity of five million tonnes per anum (mtpa), the paper added.
These assets were placed on the selling block to address the concerns raised by India's anti-competition watchdog, the Competition Commission of India (CCI), prior to the regulator's granting clearance for Lafarge and Holcim's USD 60bn global merger. The deadline for bid submission on LafargeHolcim's assets at Jharkhand and Chhattisgarh expired last week, the paper added.
As a pre-condition to the CCI's clearance for the deal, Lafarge was directed to sell its two assets at Jhardkhand and Chattisgarh to companies that currently have under 5% market share in the region. The sale includes the Sonadih cement plant at Chhattisgarh and also grinding unit in Jhardkhand, the paper added.
On 10 July, Lafarge and Holcim announced the completion of their merger into LafargeHolcim combined entity.
Mint