Lafarge-Holcim Deal Cleared Conditionally by EU, Vestager Says
(Bloomberg) — Holcim Ltd. and Lafarge SA’s plan to create the world’s biggest cement maker was approved by the European Union after, EU Competition Commissioner Magrethe Vestager said.
“Competition is important also in cement — acquisition of Lafarge by Holcim is subject to conditions. The merger can proceed. Good for growth,” Vestager said on her Twitter Inc. account.
The decision is conditional upon the divestment of Lafarge businesses in Germany Romania and the UK and of Holcim operations in France, Hungary, Slovakia, Spain and the Czech Republic, the EU said in a statement.
A merger of the Swiss and French companies would combine cement- and crushed-rock operations with $40 billion in annual revenue. To gain regulatory approval the cement makers need to dispose of operations worth as much as 7 billion euros ($8.7 billion) worldwide, people familiar with the companies’ plans have said. In Europe, Zurich-based Holcim and Paris-based Lafarge earmarked sites in France, Germany, the U.K. and Slovakia.
Holcim said last month it expects to get approval in all 20 jurisdictions required for the merger by the end of February. Bidders are completing due diligence and final bids will be handed in next month.
–With assistance from Patrick Winters in Zurich.
To contact the reporter on this story: Gaspard Sebag in Brussels at gsebag@bloomberg.net To contact the editors responsible for this story: Anthony Aarons at aaarons@bloomberg.net Peter Chapman
