Lafarge Group, Holcim merged
The Boards of Directors of Lafarge SA and Holcim Group have approved “a merger of equals, creating the most advanced group in the building materials industry” by the two biggest players in the global building materials industry.
The name chosen for the new Group, which also has full support from core shareholders of both multi-nationals, is LafargeHolcim.
The transaction is structured as a public exchange offer with an exchange ratio of 1 Holcim share for 1 Lafarge share.
The combined group would be uniquely positioned in 90 countries with a balanced exposure to both developed and high growth markets.
It also has a clearly defined governance structure with an equally composed board (seven each from Lafarge and Holcim).
Bruno Lafont, current Chairman and CEO of Lafarge Group will be the CEO of the new LafargeHolcim Group, while the Chairman of the Group will be chosen from Holcim. A statement from both companies read in part: “LafargeHolcim would have unprecedented range of products and services to answer the changing demands of the building materials industry and the challenges of urbanization. This new global company with European roots would deliver compelling benefits for all stakeholders. It would be in the best position to contribute to addressing the challenges of urbanization: affordable housing, urban sprawl and transport. The new group would increase its offer to customers through innovation delivered on an expanded scale, best in class R&D and a combined portfolio of solutions and products. Both companies have pioneered sustainability and climate change mitigation in the industry and are committed to take it to the next level.”
LafargeHolcim would be both Swiss and French, listed both in Zurich and Paris stock exchanges. Central corporate functions will be split between Paris and Zurich, and there will be balanced governance drawn from executives of both companies.