Lafarge Sells Ecuador Cement Unit

Lafarge SA, which plans to merge with Holcim Ltd., sold its Ecuador cement operations to Peru’s Union Andina de Cementos SAA for an enterprise value of $553 million to reduce debt.

Lafarge Cementos SA operates an integrated cement plant of 1.4 million tons capacity, located in Otavalo, in the northern part of the country, the Paris-based company said in a statement. The sale is subject to “customary closing conditions.”

This divestment will contribute to Lafarge’s objective to reduce net debt below 9 billion euros in 2014.

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