Lafarge and Holcim hire banks to sell assets

Lafarge and Holcim hire banks to sell assets
24 June 2014

Lafarge and Holcim have hired banks to sell assets as they try to secure antitrust approval for their planned merger, according to reports by Bloomberg citing people with knowledge of the matter.

Holcim has hired Credit Suisse and HSBC, while Lafarge is working with Morgan Stanley and BNP Paribas, the sources stated. The sales process is likely to start in the autumn, they said. 

To satisfy regulatory requirements Lafarge and Holcim will have to make divestments equivalent to around 15 per cent of revenue (around EUR5bn) and 10-15 per cent of EBITDA. Competition concerns are expected to be raised in some 17 countries spread across western and eastern Europe as well as the emerging markets. The companies envisage two-thirds of the divestments (by revenue) to come from developed markets, most notably in Europe.

The Bloomberg report stated that the companies and their advisers are looking at various scenarios to divest the assets including bundling the plants for sale into the regional groups (ie, Europe, North America, and Asia). Another option, albeit less likely, is placing the assets into a separate company to be sold to the public.

Published under Cement News