The announced mega-merger of Lafarge and Holcim is expected to change the competitive landscape in the cement industry as a new global building materials giant, LafargeHolcim, is created. Where does this leave other cement majors such as HeidelbergCement?
Dr Bernd Scheifele, CEO of HeidelbergCement, does not view the merger and the benefits of a much larger global footprint as a threat to his company. In a recent interview with Phil Roseberg, Senior Analyst at BernsteinResearch, Dr Scheifele gave his assessment of the deal, in which he argues that the predicted synergies of EUR1.4bn are “ambitious” although “not mission impossible”. However, he warned that if a company becomes too big, the complexity and cost of recovering synergies can become a major challenge.