Lafarge has signed an agreement to acquire the 45% stake held by Socam Development in Lafarge Shui On Cement, for a $329m (HK$2,55m, subject to the completion of its merger project with Holcim.
With a total cement production capacity of 32 million tonnes in South West China – in the provinces of Yunnan, Sichuan, Guizhou and Chongqing – Lafarge Shui On Cement would thus become a wholly-owned subsidiary of LafargeHolcim following completion of the merger project and this purchase.
This transaction is also subject to the approval of the shareholders of Socam.
In Late February, Holcim said its proposed $40 billion merger with French peer Lafarge was on track for completion in the first half of this year.
In April, Holcim and Lafarge agreed to merge in a bid to create the world’s largest cement and crushed-rock company. The deal is subject to clearance by regulators across a host of countries and mandates Holcim and Lafarge to sell some assets.