Lafarge Malaysia Bhd to acquire Holcim Malaysia

Lafarge Malaysia Bhd plans to acquire Holcim (Malaysia) Sdn Bhd, for MYR330m (US$77.4m) cash, as part of parent company LafargeHolcim Ltd’s plans to consolidate operations in the southeast Asian country.

In a filing with Bursa Malaysia today, Lafarge Malaysia said it has entered into a conditional share purchase agreement with Holcim Indonesia for the proposed acquisition.

Lafarge Malaysia said it plans to finance the purchase consideration via a combination of internal funds and/or bank borrowings. The combined group would have a total capacity of 14.14Mta. Lafarge Malaysia's capacity currently stands at 12.95Mta.

“The realisation of the synergies is expected to contribute positively to the future earnings and cash flows of the enlarged Lafarge Malaysia Group following the completion of the proposed acquisition,” it said.

The proposed acquisition is expected to be completed by the fourth quarter of 2015.