Holcim and Lafarge in advanced merger talks
Potential merger of equals to create the most advanced group in the building materials industry
HOLCIM and Lafarge have confirmed that they are in advanced discussions regarding a possible combination to create the most advanced group in the building materials industry.
In a statement issued on Friday afternoon, both firms said they believed that, given the strong complementarity of their portfolios and the cultural proximity between the two companies, there was rationale in considering a potential merger that could deliver significant benefits to customers, employees and shareholders.
The discussions are based on principles consistent with a merger of equals which would build upon the strengths and identities of the two companies. The merged companies would have combined sales of around €32 billion and EBITDA of €6.5 billion.
Commenting on the announcement, Rolf Soiron, current chairman of Holcim, said: ‘This proposed merger is a once in a lifetime opportunity to deliver substantially better value to customers with more innovation, a wider range of products and solutions and more sustainability and enhanced returns to shareholders.
‘LafargeHolcim will be uniquely positioned to take advantage of growth in developed markets and the world’s fastest growing economies by supplying the materials that will enable the construction industry to meet the challenges of the future.’
Bruno Lafont, chairman and CEO of Lafarge, commented: ‘By combining Holcim’s experienced teams, complementary geographies and innovative expertise with ours, we propose to set up the most advanced group in the construction industry, for the benefit of our clients, our employees and our shareholders.
‘I am confident that this merger of equals provides a unique opportunity to rapidly create the most advanced platform in our industry with outstanding synergies. With a best-in-class international portfolio, robust balance sheet and strong governance, the new group will offer higher growth and low risk, thus creating more value.’
Subject to shareholder and regulatory approvals, and other customary authorizations, completion is to take place by the end of the first half of 2015.
Stop Press: Lafarge and Holcim agree to merger
