CURRENT AFFAIRS

Detailed explanation-1: -LafargeHolcim announces it has entered into a letter agreement with Nirma Limited subject to approval by the Competition Commission of India (CCI) for the divestment of its interest in Lafarge India for an enterprise value of approximately USD 1.4 billion.

Detailed explanation-2: -Nirma Ltd. has agreed to acquire Lafarge India’s cement assets for about $1.4 billion (Rs. 9, 400 crore), outbidding Sajjan Jindal-led JSW Cement and Piramal Enterprises, as Indian companies vie to add capacity for the building material to tap growing demand from the infrastructure sector.

Detailed explanation-3: -This means a cement plant does not own rights to mine reserves but it is the company that owns it. Hence, Lafarge announced about its plans to sell its entire India operations as it will enable it to transfer the mine reserves rights which it owns to another company rather than selling one or two cement plants.

Detailed explanation-4: -The Lafarge and Holcim transaction were in the nature of a merger of equals and strategic combination of the businesses that aims to create a geographically diversified company active in the production and supply of cement, aggregates, and ready mix concrete.

Detailed explanation-5: -In 2015, Lafarge merged with Holcim and a new company was formed under the name of LafargeHolcim. It was renamed to Holcim Group in 2021.