11:24 | 10/08/2016 Companies
Swiss giant cement producer LafargeHolcim has agreed to sell its entire 65-percent ownership in the joint-venture LafargeHolcim Vietnam to Thailand’s Siam City Cement Public Co Ltd.
LafargeHolcim Vietnam is valued at 867 million Swiss franc (on a 100 percent basis) (more than 890 million USD), thus making the value of the deal up to 580 million USD.
“Closing of the transaction Vietnam is subject to customary regulatory and shareholder approvals, as well as to a right of first refusal of LafargeHolcim’s joint venture partner,” LafargeHolcim said in a statement on August 3.
The deal is expected to occur in the fourth quarter of this year, the Swiss cement producer said.
Joint venture Holcim Vietnam was founded in 1994 with an initial capital of 233.8 million USD. Two shareholders were Holcim and Vietnam Cement Industry Corp (Vicem).
Swiss-owned Holcim Vietnam late last year merged with the French-owned Lafarge Vietnam after the two parent companies completed a merger in July 2015. The new joint venture, named LafargeHolcim Vietnam, became the largest foreign-owned cement producer in Vietnam, operating one integrated plant and four grinding plants with an annual cement grinding capacity of 6.3 million tonnes.
LafargeHolcim, located in Jona of Switzerland, is the world leader in the building material industry, presents in 90 countries and focuses on cement, aggregates and concrete.
The Swiss cement producer has 100,000 employees around the world and recorded combined net sales of 29.5 billion Swiss franc last year.
Siam City Cement Public Co Ltd (SCCC), the second largest cement producer in Thailand, was founded in 1969. The company has expanded its operations into some of the Asian markets such as Indonesia and Cambodia, and has a turnover of 908 million USD last year./.