Lafarge Proposes to Sell Assets Worth $450 Million to SummitFrancois de Beaupuy
Lafarge SA agreed to sell a cement plant in Iowa and seven distribution terminals on the Mississippi river to Summit Materials Inc. for $450 million as part of a plan to win antitrust approval for its planned merger with Swiss rival Holcim Ltd.
Under the agreement, Paris-based Lafarge would receive a Summit cement terminal in Iowa, Lafarge and Holcim said in a joint statement Friday. Holcim is also offering to sell three terminals in Michigan and Illinois, grinding stations in Illinois and in New Jersey, and a terminal in Massachusetts, the statement said.
Summit plans to fund the acquisition with a combination of debt and equity, the Denver-based company said in a separate statement. Lafarge and Holcim said their proposed divestments are all subject to approval of the U.S. Federal Trade Commission and to the closing of their planned merger.
The French and Swiss cement makers reiterated that they expect to complete the merger in July. The deal needs to get approved by two-thirds of Holcim shareholders at a meeting due May 8, and requires that at least two-thirds of Lafarge shareholders subsequently tender their shares in exchange for Holcim shares.