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The companies have agreed a new share-swap ratio (nine Holcim shares for ten Lafarge shares), and it was decided that Lafarge boss Bruno Lafont would no longer become CEO of what would be the world’s largest cement group.
A new CEO, to be proposed by the Lafarge board and accepted by the Holcim board, will be appointed.
However, as ABE goes to press, Russian businessman Filaret Galchev, Holcim's second-largest shareholder with a 10.8% stake via Eurocement Holding, is said to have rejected the merger terms as “not satisfactory and half-baked.”
It is understood that Galchev believes the new ratio still fails to compensate Holcim shareholders adequately, and that a decision needs to be made about who will lead any combined group.
Another major Holcim shareholder expressed similar concerns, saying he needed to know who would lead the enlarged group before he can decide whether to back the deal.
Other certain key shareholders of both companies have confirmed their support for the revised merger terms, and it was expected that the transaction would close in July 2015.
Meanwhile, Wolfgang Reitzle (chairman of Holcim) and Bruno Lafont will be non-executive co-chairmen of the board, working closely together to make the merger a success. Beat Hess will be vice-chairman of the board.
The Holcim shareholder resolutions required to implement the combination are expected to be presented to a Holcim shareholders meeting on or about 7 May, 2015.
Prior to the reported views of the two major shareholders, a dual company statement said: “With this amended agreement, the project to combine Lafarge and Holcim to become the most advanced company in its industry has taken another important step forward. Both companies are continuing to work intensively on preparing the closing of the transaction and the successful integration post-merger.”
