Holcim’s Board of Directors has announced that it will no longer pursue its merger with Lafarge under the current share agreement. In a statement, Holcim says:
‘(T)he Holcim Board of Directors has concluded that the combination agreement can no longer be pursued in its present form, and has proposed to enter into negotiations in good faith around the exchange ratio and governance issues. Lafarge has indicated that it refuses to renegotiate, except the exchange ratio. Further details will be communicated in due course.”
Meanwhile, a statement from Lafarge says:
‘Lafarge's Board of Directors remains committed to the project that it intends to see implemented. The Board said it is willing to explore the possibility of a revision of the parity, in line with recent market conditions, but it will not accept any other modification of the terms of the existing agreements.’
Holcim has also decided that it will not discuss the merger at its AGM next month.
Adapted from press releases by Katherine Guenioui
Read the article online at: https://www.worldcement.com/europe-cis/16032015/holcim-and-lafarge-to-renegotiate-merger-terms-518/
