The proposed merger of the Swiss cement producer Holcim and its French competitor Lafarge is expected to bring about cost savings amounting to €1.4 billion/year it has been claimed. In this way, the competitiveness of the resulting entity will be strengthened. Holcim and Lafarge also plan to sell off plants and business segments that have become unprofitable due to the lower demand for construction materials as a result of the financial crisis.
The proposed merger of the Swiss cement producer Holcim and its French competitor Lafarge is expected to bring about cost savings amounting to €1.4 billion/year it has been claimed.
In this way, the competitiveness of the resulting entity will be strengthened. Holcim and Lafarge also plan to sell off plants and business segments that have become unprofitable due to the lower demand for construction materials as a result of the financial crisis.
The units to be sold amount to a total value of around €3.60 billion, and both companies hope that such sales will assist in receiving approval for the merger from the competition authorities.
