Cemex will be able to buy Holcim’s Spanish assets after the deal was approved by the European Commission, marking a key step towards the earmarked US$50 billion creation of Lafarge-Holcim. Holcim assets comprise plants and quarries dedicated to the production and supply of cement, aggregates, ready-mixed concrete and mortar in Spain. The Commission believe the major acquisition does not raise competition concerns since the merged entity will continue to face sufficient competition from its rivals in all
Cemex will be able to buy Holcim’s Spanish assets after the deal was approved by the European Commission, marking a key step towards the earmarked US$50 billion creation of Lafarge-Holcim.
Holcim assets comprise plants and quarries dedicated to the production and supply of cement, aggregates, ready-mixed concrete and mortar in Spain. The Commission believe the major acquisition does not raise competition concerns since the merged entity will continue to face sufficient competition from its rivals in all markets concerned.
By selling off these assets, Holcim and Lafarge will be nearing its $5 billion sales target that both companies hope will satisfy competition authorities and lead to the creation of what will be the world’s biggest cement firm.
This latest development follows news earlier in the summer that competition authorities were not satisfied with the proposal for Spain.
On 23 April 2014, the Commission opened an in-depth investigation over concerns that the proposed transaction could substantially lessen competition in the market for grey cement by removing Holcim assets as an actual competitor in eastern Spain.
The Commission was also concerned that the proposed transaction could facilitate existing coordination between grey cement producers in central Spain or make future coordination more likely. However, these concerns have now been dispelled.
Cemex also plans to acquire control of the whole of Holcim’s activities in cement, ready-mixed concrete and aggregates in the Czech Republic, an operation cleared by the Czech competition authority in March 2014.
Earlier this year, Lafarge agreed to buy back Anglo American’s stake in Lafarge Tarmac so it can sell the entire unit in a move which would again bring the merger with Holcim closer.
