Lafarge buys L&T Concrete
By Chris Sleight19 May 2008
Lafarge has announced the € 226 million (US$ 350 million) acquisition of L&T Concrete from Indian industrial conglomerate Larsen & Toubro. Lafarge says the deal will give it a 25% share of India's ready-mixed concrete market.
The acquisition comprises 66 concrete plants in various locations in India, including key markets such as Bangalore, Delhi, Kolkata and Mumbai. The plants' total capacity as put at 4.1 million m3 per year.
Lafarge says the deal markets an important step for its Aggregates and Concrete division, in line with the strategy of moving into fast-growing emerging markets. Lafarge chairman & CEO, Bruno Lafont said, "Lafarge was the first in its industry to move into aggregates and concrete in a significant way over 10 years ago, and to develop a unique expertise in creating value in the concrete business. With this acquisition, we are taking a pioneering step in the emerging Indian market."
In addition to the L&T businesses, Lafarge has a ready-mixed concrete plant in Raipur, Chhattisgarh State. It also has a sizeable presence in the cement market, with an annual production capacity of 5.5 million tonnes in Eastern India. It has been active in the Indian cement industry since 1999 when it acquired Tata Steel's cement business.