In Europe, Lafarge is looking to sell its German assets; its Mannersdorf cement plant in Austria; its Romanian assets; its French assets on Reunion Island, except for its shareholding in Ciments de Bourbon; and its UK
Holcim’s European sell off consists of the firm’s assets in metropolitan France, except for its Altkirch cement plant, and its aggregates and ready-mixed sites in the Haut-Rhin market; and all Holcim operating assets in Hungary and Serbia.
A spokesperson for both companies said the future LafargeHolcim group, which would create the world’s biggest cement maker, will have a significant and balanced industrial base in Europe – which will account for around 20% of its revenues - within its overall global footprint, enabling it to take advantage of the European economic recovery.
Outside Europe, Holcim is proposing to sell off its Canadian and Mauritian assets; and both Holcim and Lafarge’s associated companies in the Philippines (Lafarge Republic Inc. (LRI) and Holcim Philippines) are said to be “exploring the combination of their businesses other than LRI’s Bulacan, Norzagaray, and Iligan plants”. In Brazil, Holcim and Lafarge will soon file with the national regulator, CADE, and propose a comprehensive and high quality package of divestments.
A Divestment Committee was set up Holcim and Lafarge following the announcement of the planned merger on April 7 with the aim of taking forward the divestment process. It has drawn up the list of proposed asset disposals to anticipate potential competition authorities’ requirements.
Today’s announcement is said to represent a major part of the total assets that the two companies aim to divest.
Both companies are said to be continuing to consider whether divestments would be necessary “where there might be overlaps or depending on regulatory requirements”.
As announced, the closing of the planned LafargeHolcim merger is expected in H1 2015, which, the companies say, will aim to create the “most balanced and diversified portfolio in the industry, operating in 90 countries and creating superior value for its stakeholders”.
