Lafarge, the world’s second-largest cement maker, has acquired Larsen and Toubro’s (L&T) Ready Mix Concrete (RMC) business for $349 million (Rs 1,480 crore). The deal will help Lafarge access L&T’s 66 plants and also make it the country’s largest RMC maker.Leading cement manufacturers Holcim, AV Birla Group and Heidelberg were also in the race to buy the business.
Lafarge has routed the acquisition through its building material firm Lafarge Aggregates & Concrete. A formal announcement is expected on Thursday. Lafarge is believed to have informed the Paris stock exchange. Lafarge India is not a listed entity.JM Financial advised Lafarge on the transaction, while Citigroup Global Markets advised L&T.
Each unit of L&T Concrete has a capacity to produce 5,000-6,000 cubic metres of concrete a month, while the total capacity is estimated to be around 3-4 million cubic metres per annum. RMC is widely used in the building and construction industry in India, where L&T has a 25% market share.
Read more in The Economic Times article.
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