UPDATE:Lafarge Sells Some Aggregates,Concrete Sites To Holcim, Others

French construction group Lafarge SA (LFRGY, LG.FR) said Monday it has sold some of its aggregates and concrete businesses in France, Portugal and Switzerland for about EUR120 million in total, as part of its 2010 asset disposal program.

"These transactions are part of the Group's divestment plan, exceeding the target of EUR500 million of divestments over the year," Lafarge said in a statement.

Lafarge declined to comment further on the transaction, although a spokeswoman said the company had 1,773 aggregates and concrete production sites worldwide in 2009.

Lafarge, which claims to be the world's largest maker of building materials, said it sold four plants in the Alsace region of eastern France and four plants in Switzerland, as well as eight aggregates quarries in Alsace.

The Swiss-based concrete operations have been sold to Holcim Switzerland and those in France to the Eiffage Travaux Publics unit of French construction group Eiffage SA (FGR.FR) and to Holcim France. This disposal will become effective on Dec. 31, it added.

But Holcim Ltd. (HCMLY, HOLN.VX) told Dow Jones Newswires in Zurich that it is paying EUR50 million for the assets its subsidiaries are buying. Holcim is the world's largest cement producer. "This strategically attractive acquisition will allow Holcim to supply customers even better in these markets," it said in a separate statement.

"At the same time, the acquisition serves to secure high-quality aggregates reserves in this attractive economic area," Holcim added in its statement.

Meantime, Lafarge said it disposed of all its aggregates and concrete businesses in Portugal, consisting of 29 concrete plants and four aggregates quarries, to Portuguese construction group Secil. The transaction is subject to approval by the Portuguese competition authorities, it added.

-By A.H. Mooradian and Katharina Bart, Dow Jones Newswires; +33 1 4017 175; art.mooradian@dowjones.com

-Martine Pauwels in Paris contributed to this article.

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