China: LafargeHolcim has signed a framework agreement with Tianjin Circle Enterprise Management Center (Tianjin Circle) to sell a controlling stake in Sichuan Shuangma Cement (Shuangma) for Euro469m. The multinational cement producer owns 55.93% of Shuangma. The sale is subject to approval from the shareholders of Shuangma and the completion of a mandatory offer for the shares of minority shareholders of Shuangma, as well as normal regulatory approval. The acquisition is expected to be complete in the fourth quarter of 2016.

Under the terms of the agreement, Tianjin Circle has agreed an option to purchase the remaining shares in Shuangma from LafargeHolcim in 2018 for Euro147m. LafargeHolcim has also agreed an option to buy Shuangma’s cement assets, within a certain period after the sale closes, for around Euro358m. On this basis, the expected immediate impact on LafargeHolcim net debt of these agreements would have been a reduction of Euro112m.

Sichuan Shuangma is listed on the Shenzhen Stock Exchange and operates four integrated cement plants with a production capacity of 11Mt/yr.