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Switzerland: Holcim rejects €41 billion merger with rival Lafarge

By  |  March 17, 2015

Swiss cement maker Holcim has told Lafarge that the companies’ $39 billion merger of equals will have to be renegotiated to give Holcim shareholders a greater stake in the combined group and a bigger say in management.

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    Holcim and Paris-based Lafarge announced plans last April to merge the bulk of their operations to create a cement maker with about €32 billion in sales and about €6.5 billion of Ebitda, a measure of profitability.

    “The Holcim board of directors has concluded that the combination agreement can no longer be pursued in its present form, and has proposed to enter negotiations in good faith around the exchange ratio and governance issues,” Holcim said on Monday.

    Lafarge said that it “remains committed to the project” and is willing to renegotiate the equity exchange ratio but refused to ponder any other changes to the merger terms.

     

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