LH: potential merger of Indian operations on the cards?

Lafarge and Holcim may bring together their local Indian interests as part of the merger process between the two global cement majors, according to local press.

The Economic Times reported yesterday that Holcim and Lafarge plan to merge Holcim’s local companies ACC and Ambuja Cements together with Lafarge India, citing sources with direct knowledge of the matter. According to the report, the plan is still at an early stage and the cement producers have mandated investment bank Lazard to advise on the restructuring.

As part of the new proposal, Holcim and Lafarge may re-look at the former’s rejig plan announced last year which is yet to get the FIPB approval, a source said. As part of that plan, shareholders of Ambuja had approved ACC's stake buy from Holcim.