As part of their proposed merger, Lafarge and Holcim have entered exclusive negotiations further to a binding commitment made by CRH regarding the sale of the following assets:
- France: in metropolitan France, all of Holcim’s assets, except for its Altkirch cement plant and aggregates and ready-mix sites in the Haut-Rhin region, and a Lafarge grinding station in Saint-Nazaire; Lafarge’s assets on Reunion island, except for its shareholding in Ciments de Bourbon.
- Germany: Lafarge’s assets.
- Hungary: Holcim’s operating assets.
- Romania: Lafarge’s assets.
- Serbia: Holcim’s assets.
- Slovakia: Holcim’s assets.
- United Kingdom: Lafarge Tarmac assets with the exception of Cauldon plant and certain associated assets.
- Canada: Holcim’s assets.
- United States: Holcim’s Trident cement plant (Montana) and some terminals in the Great Lakes area.
- The Philippines: the shares of Lafarge Republic, Inc. (LRI) from, and other specific assets of, the major shareholders (namely Lafarge Holdings Philippines, Inc., South Western Cement Ventures, Calumboyan Holdings, Inc., and Round Royal, Inc.), except LRI's (i) investment in Lafarge Iligan, Inc., Lafarge Mindanao, Inc. and Lafarge Republic Aggregates, Inc., (ii) Star Terminal at the Harbour Center, Manila, and (iii) other related assets.
- Brazil: assets from both Holcim and Lafarge, which include three integrated cement plants and two grinding stations (with a total cement production capacity of 3.6 million tpy), as well as some ready-mix plants located in the Southeastern region of Brazil.
Taken together, the assets being disposed under the terms of the announcement generated estimated 2014 sales of €5.2 billion, with an estimated 2014 operating EBITDA of €744 million. The enterprise value of €6.5 billion [CHF6.8 billion] reflects the value of these high quality assets.
"The projected transaction is a key step towards the creation of LafargeHolcim and the value offered reflects the strong quality of the selected assets. This successful outcome demonstrates the quality of the collaborative work undertaken by Holcim and Lafarge teams. With this announcement, we remain firmly on track to complete our proposed merger in the first half of 2015", commented Wolfgang Reitzle, designated Chairman of the Board of Directors of LafargeHolcim and Bruno Lafont, designated CEO of the future combined company.
The divestment process will be carried out in the framework of the relevant social processes and the ongoing dialogue with the employee representatives’ bodies. It will be submitted to the relevant competition authorities and to the shareholders of CRH. The divestments are subject to the completion of the merger, including a successful public exchange offering and approval by Holcim’s shareholders in 2Q15. The closing of the planned merger is expected in 1H15. It will create the most advanced group in the industry, operating in 90 countries, with a strong balance sheet, and will generate superior value for its shareholders, customers and other stakeholders.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.worldcement.com/europe-cis/02022015/holcim-and-lafarge-announce-project-to-sell-assets-to-crh-247/
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