The creation of the world’s biggest cement company through the €42 billion merger of sector giants
The Swiss cement giant’s board is seeking a greater share of the combined entity after Holcim’s healthier trading and profits over the past 12 months, compared to its would-be French partner.
France-based Lafarge on Monday said it received a letter on Sunday from the chairman of Holcim’s board saying the Swiss company doesn’t want to pursue their previous agreement that was approved last July.
In a statement, Lafarge said its Board of Directors remained committed to the project that it “intends to see implemented”. The Board said it is willing to explore the “possibility of a revision of the parity, in line with recent market conditions, but it will not accept any other modification of the terms of the existing agreements.”
A key issue of concern for the Holcim Board of Directors is the current one-to-one share exchange ratio that was to give both companies’ shareholders equal weight in the merged firm. Holcim is also looking for a change in the management of the new company.
