Sale generates cash for construction products giant and allows it to retain stake in 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.