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Lafarge buys back Baring Asia's stake in its India unit

  • Holden Mann
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French cement maker Lafarge has agreed to buy back Baring Private Equity Asia's stake in its India division, Lafarge India, for EUR270 million ($304 million).

Currently Baring holds a 14% stake in Lafarge India. The transaction will return 100% control of the division to Lafarge, and is a precondition to its merger with Swiss rival Holcim Limited, according to a release.

Baring bought its stake in Lafarge India in 2013 for $256 million - including an undisclosed amount of debt - in a deal meant to fund Lafarge's expansion and construction of new facilities in the country. 

Lafarge announced its merger with Holcim last year. Along with buying back its stake in Lafarge India, the company is also selling off some of its assets in the country as part of the conditions imposed by the Competition Commission of India. Baring is reportedly among the bidders for those assets, along with The Blackstone Group and two cement firms.

Baring is currently investing out of its sixth fund, which closed at $3.98 billion earlier this year. The firm has over $5 billion in total committed capital and targets mid-market companies that need capital for expansion, acquisitions or recapitalization.

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