LH merger: a new era begins
Lafarge and Holcim have surprised the industry by confirming their intention to combine in a ‘merger of equals’, designed to create an unrivalled building materials group with operations spanning 90 countries and sales of EUR32bn. The transaction, which is scheduled to close by the 1H15, has divided opinion, excited commentators and is certain to herald a new era for the global cement industry.
On 4 April 2014, Holcim and Lafarge confirmed they were in advanced talks over a proposed merger. Stocks in both companies rose sharply, with Holcim shares 6.9 per cent ahead and Lafarge’s up by 8.9 per cent at the close of business. The deal was formally confirmed on 7 April, when Lafarge CEO, Bruno Lafont, and Holcim chairman, Rolf Soiron, held a joint press conference outlining details of the proposed merger.