La­farge Group, Hol­cim merged

Daily Trust - - INDUSTRY - By Hamisu Muham­mad

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.

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