Mumbai: Lafarge SA, the world''''s largest cement maker, will acquire the cement unit of Orascom Construction Industries of Egypt for 8.8 billion euros ($12.9 billion).

The acquisition will make the Paris-based Lafarge SA the biggest producer of cement in Egypt, Algeria and the United Arab Emirates as well.

As part of the deal, Orascom chief executive Nassef Sawiris will buy an 11.4 per cent stake in Lafarge. Sawiris will make the investment through a holding company composed of other members of his family. The company will get ``more than one'''''''' Lafarge board seat, with the number to be decided next week.

Lafarge will finance the purchase with 6 billion euros of debt and the sale of 22.5 million new shares, the company said in a statement. The acquisition will be financed by BNP Paribas, Calyon and Morgan Stanley

The acquisition of Orascom, the biggest publicly traded cement maker in the Middle East, will add 45 million tonnes to Lafarge''''s cement capacity.

Lafarge said the purchase would allow it to garner 65 per cent of its earnings before interest, tax, depreciation and amortisation from emerging markets by 2010.

Orascom cement has projected annual sales growth of 30 per cent and 33 per cent for Ebitda between 2007 and 2010.

The French company in November also announced plans to invest $600 million in new plants and factory upgrades in China.

Lafarge and Switzerland''''s Holcim Ltd are investing overseas to tap growth in global construction and transport spending.  Both are using acquisitions to grow in countries where spending on building and other infrastructure projects is accelerating.