The world’s two leading cement producers, France’s Lafarge and Switzerland’s Holcim, have reportedly agreed to a $55bn merger. An official announcement is expected today. The new company will be led by Lafarge CEO Bruce Lafont, writes Bloomberg. The deal must first be approved by the countries’ antimonopoly offices.
The new company would have combined revenues of about $40bn and help cut energy costs as well as production overcapacity. The merger will also reduced the companies’ debts, while the resulting company will retain dual Swiss and French stock market listing as well as both operating headquarters.
Lafarge has a strong market position in Africa and the Middle East, while Holcim is excels in Latin America. The only issues observers anticipate would stem from the new company being too strong in Western Europe, Canada and the US.
