Lafarge, Holcim Notify EU of Merger to Start Approval Process

Oct. 28 (Bloomberg) — Holcim Ltd. and Lafarge SA officially notified the European Union of their merger, a step toward final approval of their plans to create the world’s largest cement maker.

The two companies held “constructive” pre-notification discussions with the European Commission, they said in a joint statement. As a result of the talks they’ve decided to keep a Lafarge plant in Austria and to sell Holcim’s operations in Slovakia.

“Both companies will continue to consider whether further divestments would be necessary in areas where there are overlaps or to satisfy regulatory requirements,” Lafarge and Holcim said in a joint statement today.

The Swiss and French cement makers are working on divestments to win regulatory approval of their merger that would combine cement- and crushed-rock operations with $40 billion in annual revenue. Divestments are weighted toward Europe, to cut exposure of both companies to the slower-growing region. Other plants earmarked for divestment include sites in France, Germany and Romania.

Zurich-based Holcim and Paris-based Lafarge are selling about 10 percent of their combined assets.

Under the EU’s merger-review process, most deals are cleared at the first hurdle. The commission can open an in-depth probe if the transaction raises competition concerns.

To contact the reporter on this story: Patrick Winters in Zurich at [e-mail] To contact the editors responsible for this story: Simon Thiel at [e-mail] Thomas Mulier