Hong Kong-based Baring Private Equity Asia (BPEA) has sold Halla Cement, a South Korean cement producer, to Asia Cement for US$723m.

Halla Cement, formerly known as Lafarge Halla Cement, operates an integrated main plant and three slag cement plants, with a capacity of 7.6Mta. With its acquisition, Asia Cement will become the third-largest cement player in Korea with a 19 per cent market share.

"The Korean cement industry is consolidating, and Halla Cement has a leading market position and a broad coastal presence which makes a perfect combination with a player like Asia Cement, who has a deep inland network," said Han Chul KIM, managing director of BPEA.

BPEA invested in the South Korean company in April 2016, carving the business out from parent company LafargeHolcim and creating a new standalone business. The private equity firm subsequently took full control of Halla Cement in May 2017.