Under the proposed agreement, Lafarge would receive net cash proceeds of approximately €850m and in addition would receive a 20% interest in the new partnership, which would combine the European and South American Gypsum activities of both Groups. Lafarge would be able to sell its 20% interest to Etex Group after 5 years.
Lafarge's European & South American Gypsum division manufactures gypsum wallboard and other gypsum-based products such as plaster, joint compounds, and plaster blocks. In 2010, Lafarge's European and South American Gypsum operations generated consolidated sales of €895m.
"This project unlocks immediate value for the Group while allowing Lafarge to participate in the new entity's future success," said chairman and chief executive officer of Lafarge, Bruno Lafont. "We are very pleased of the future prospects of this reinforced partnership with Etex Group, a strong industrial company with expertise in building materials and systems. This operation is positive for Lafarge and its shareholders and will contribute to the strengthening of the Group's balance sheet and to the optimization of its portfolio."
The proposal will now be submitted to the relevant authorities.