Hungary’s Magyar Cement said Saturday that it is preparing a Euro 200m lawsuit against Holcim, in the Swiss courts.
Magyar and Holcim have been locked in a dispute since the Swiss cement giant took over a 57 percent stake in the Hungarian company’s Hejoecsaba plant in 1994. Magyar said in a statement released in Zurich that it was ready to pursue its claim that the acquisition was fraudulent in a civil suit in Switzerland, where Holcim is based.
"It is now up to the Holcim Board of Directors to close this infamous chapter in Holcim’s history on a more favourable note," the statement added. Holcim has rejected the accusation. Both sides have claimed that the outcome of previous legal proceedings in Hungary was in their favour.
Magyar said it was ready to claim about Euro 100m for "misappropriation or fraudulent expropriation" of the stake in the Hejoecsaba plant, and some Euro 100m compensation for the use of the plant and its output over 13 years. It also wants the full return of the 57 per cent share.