LargeHolcim will divest from its Vietnam joint venture this year. Photo: Internet
Building materials company LafargeHolcim has announced that it will sell its entire 65% shareholding in LafargeHolcim Vietnam to Thailand’s Siam City Cement Public Company Limited (SCCC).
The enterprise value will be 867 million Swiss francs ($890 million), on a 100 percent basis, the Swiss-French group said in a statement filed on its website.
Vietnam Cement Industry Corporation holds the remaining 35% in the joint venture.
The transaction is subject to customary regulatory and shareholder approvals, as well as to a right of first refusal of LafargeHolcim’s joint venture partner. The deal and is expected to occur in the fourth quarter of 2016, the firm added.
According to Vietnam Investment Review, the divestment is part of LafargeHolcim’s plan to restructure its overseas markets including Vietnam, which has seen an oversupply of cement.
LafargeHolcim Vietnam operates one integrated plant and four grinding plants with an annual cement grinding capacity of 6.3 million tons. The company is also runs seven ready-mix concrete plants in southern Vietnam with a combined capacity of once million cubic meters per year.
In December 2015, Lafarge Vietnam, a subsidiary of French Lafarge Group, officially merged with Holcim Vietnam to form LafargeHolcim, becoming the largest foreign-invested cement producer in the Southeast Asian country.
Established in 1969, SCCC is now the second largest cement company in Thailand, with a turnover of $908 million in 2015. SCCC has two core shareholders the Thai Group, Ratanarak and Jardine Group.