Lafarge to sell Ecuadorian business

Lafarge has agreed to sell its share of its operations in Ecuador to Union Andina de Cementos (UNACEM) for US$ 553 million.

The assets being transferred include the company’s 1.4 million tonnes per year integrated cement plant in Otavalo, in the North of the country. Lafarge is selling its 98.6% stake in the business, and UNACEM said it will make a tender offer for the remaining shares, which are owned by other shareholders and listed on the Quito, Ecuador stock exchange.

Unacem is headquartered in Lima, Peru and was formed in 2012 from the merger of Cementos Lima and Cemento Andino. The acquisition of Lafarge’s Ecuadorian businesses marks the company’s first entry into the country. In addition to its Peruvian cement operations, UNACEM also owns a majority stake in Drake Cement, which is based in Arizona, US.

Lafarge said the divestment would contribute to its objective to reduce net debt below € 9 billion (US$ 12.2 billion) in 2014.

The deal is subject to closing conditions and is expected to be concluded this year.