Holcim responds to Lafarge merger deal renegotiation talk

Swiss cement giant 680 Holcim has responded to widespread speculation within industry and wider business media that the terms of their pending merger with 725 Lafarge may need to be changed due to it out performing the French firm in their latest trading results.

Holcim recorded higher net sales and significantly improved operating profit in Q4 2014 ahead of the proposed merger due to be completed in the first half of this year.

Although not saying they intend to seek new merger deal terms, a statement released by Holcim does not rule out such a move.

It reads: “As announced on April 7 2014, Holcim and Lafarge entered into a business combination agreement on terms previously agreed and communicated to the press. The agreement is subject to various closing conditions.  

“The Board of Holcim has taken note of press statements about shareholder reactions relating to the commercial terms of the combination. The Board of Directors of Holcim does not comment on these statements, except to say that no direct quotes are attributable to Holcim.  

“Any transaction will have to be approved by two-thirds of Holcim's shareholders in an extraordinary general meeting, and two-thirds of Lafarge's shareholders will need to accept Holcim's exchange offer launched pursuant to French takeover rules.”