Holcim, Lafarge to Merge into Largest Global Cement Company

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--With the cement pipeline growing in emerging world markets, long-time competitors Holcim (OTC:HOMLF) (Jona, Switzerland) and Lafarge (OTC:LFRGY) (Paris, France) are merging to seize opportunities in the growing markets. The merger will create the world's largest cement group, worth $55 billion.

The deal was described by the companies as a "merger of equals" and will be based on the offer of one Holcim share for one Lafarge share.

The companies have committed to sell assets to preempt anti-trust objections from authorities. Holcim Chairman Rolf Soiron said that these disposals would account for annual sales of $6.9 billion, and 66% would be in Europe. Following the announcement, Holcim shares rose 3.37% and Lafarge shares rose 3.06%, after already rising sharply on rumors of the deal.

The new company will be titled LafargeHolcim and have a profile in 90 countries, the companies said in a joint statement. The international spread will be evenly balanced between developing countries and countries with strong growth. Lafarge has a strong presence in Africa, and Holcim in Latin America. Both companies have large and competing interests in Europe.

For related information, see August 9, 2013, article - India Leads $173 billion in Global Cement Manufacturing Project Development.

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