Italcementi SpA, Italy’s biggest cement maker, and Ciments Francais SA said they have abandoned plans to fully merge because of “excessive demands” by US investors.
The U.S.-based institutional investors bought debt issued by Paris-based Ciments Francais in 2002 and 2006, worth a total of US$500m, the companies said in a joint statement distributed by Hugin.
The demands were judged to be “excessive and unacceptable for the two companies and not in line with the goal of the merger,” according to the statement. The companies didn’t specify the demands.
Bergamo, Italy-based Italcementi owns 81 per cent of Ciments Francais, according to the French company’s website.