The Competition Commission of India (CCI) has cleared the proposed 14 per cent sale of Lafarge India Pvt Ltd to Baring Private Equity Asia.
"The combination is not likely to have appreciable adverse effect on competition in India and therefore, the Commission hereby approves the combination under... the (Competition) Act," CCI said in its order dated June 26.
In May Baring Private Equity Asia, through its wholly-owned subsidiary Paris Cement Investment Holdings, agreed to acquire a 14.03 per cent stake in Lafarge India for EUR200m.
When the deal was initially announced, Lafarge said it would use the proceeds to accelerate its growth plans in India across all its product lines. A recent study by Global Construction Perspectives Oxford Economics has underlined the importance of this market, stating that the country is expected to become the world’s third-largest construction market by 2015. The study noted that India would add 11.5 million homes a year to become a US$1trn a year.
Commenting on the findings, Lafarge chairman and CEO, Bruno Lanfont said the study reinforces why the company views the Indian market as so promising. "The attractive growth of the construction industry will be higher than the short term economic growth. India is one of our focus countries, as we want to expand our operations from the North East to the rest of the country," he told local press.
