Holcim CEO Bernard Fontana visited Sri Lanka recently and confirmed with press that the country is unlikely to suffer any negative impact from the merger of Holcim and Lafarge.
“Sri Lanka is a growing market and we have ambitious plans. Holcim has been and will remain committed to Sri Lanka,” Fontana told press, adding that divestments will occur in countries where the two companies overlap. “Two thirds of the divestments will come from Europe. We are also reviewing our operations in Canada, USA and Brazil,” he said.
Holcim Lanka has a market share of around 30% and has invested US$150 million on its operations in the country since entering the market and received some US$40 million in dividends. The company said that its prognosis for return on investment in the country is good in the long term. After the merger, LafargeHolcim’s assets in the country would equate to a market share of less than 50%.
Fontana said that the merger would take at least 12 months to complete and requires approval by 22 regulatory bodies in Europe, adding: “until that happens we remain competitors”.
Adapted from a report on The Daily Mirror by Katherine Guenioui