Lafarge SA, the French cement maker that plans to merge with Holcim Ltd. of Switzerland, sold its Ecuador unit to Peru’s Union Andina de Cementos SAA for an enterprise value of $553 million to reduce debt.
Lafarge Cementos SA operates a 1.4 million metric-tons capacity cement plant in Otavalo, Ecuador, the Paris-based company said in a statement. The sale is subject to “customary closing conditions.”
Chief Executive Officer Bruno Lafont has been selling assets to repair a credit rating that has fallen one level below investment grade. Lafarge reduced its net debt to 9.95 billion euros ($13.6 billion) at the end of December and has a target of below 9 billion euros by the end of this year.