Holcim, Lafarge confirm merger into dominant global cement supplier firm
April 8, 2014, 12:15 am TWN
GENEVA, Switzerland--Swiss cement group Holcim and French rival Lafarge are to merge, creating a dominant supplier of cement for concrete to the global construction industry.
The deal, described in a statement on Monday as "a merger of equals," and a major event in the global construction industry, will be based on the offer of one Holcim share for one Lafarge share.
The two groups made a commitment to sell assets to pre-empt anti-trust objections from competition authorities.
On the Swiss stock market, the price of Holcim shares jumped 5.24 percent to 84.40 Swiss francs in initial trading and in Paris, Lafarge shares were up 4.57 percent to 67.02 euros. Their stocks had already reacted to rumors of merger talks on Friday.
The new company will be called LafargeHolcim and "will have a unique position in 90 countries and will be evenly balanced between developing countries and countries with strong growth," the firms said in a join statement.