Lafarge sells 80% of its gypsum business

Construction products giant Lafarge has entered into exclusive negotiations with Etex Group to sell an 80% stake in its gypsum business.

Under the terms of the deal Lafarge will receive €850m (£748m) for its European and South American gypsum operation and a 20% stake in a new partnership with Etex.

Lafarge said the sale strengthened its balance sheet while allowing it to retain a stake in the gypsum business. The sale is subject to approval by anti-trust authorities.