Lafarge and Holcim have entered into a binding agreement with CRH plc for the sale of certain key assets for an enterprise value of €6.5 billion. The binding offer letter for the assets, which are being divested to meet competition requirements surrounding the proposed LafargeHolcim merger, was first announced in early February 2015. Lafarge and Holcim have accepted the offer following an information-consultation process with works councils and employee representatives. The transaction is subject to the successful completion of the merger, which is expected to close in July 2015.
The European Commission cleared CRH plc’s plans to purchase the divested Lafarge and Holcim assets in April 2015. Competition authorities in the US and Canada approved the LafargeHoclim merger proposal earlier this month.
The assets that are due to be acquired by CRH plc are:
- Brazil: assets from both Holcim and Lafarge, which include three integrated cement plants and two grinding stations (with a total of 3.6 million tpy cement capacity), as well as some ready-mix plants located in the Southeastern region of Brazil.
- Canada: Holcim’s 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 grinding station of Lafarge 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.
- 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.
- Romania: Lafarge’s assets.
- Serbia: Holcim’s assets.
- Slovakia: Holcim’s assets.
- United Kingdom: Lafarge Tarmac assets with the exception of its Cauldon and Cookstown plants and certain associated assets.
- United States: Holcim’s Trident cement plant (Montana) and five terminals in the Great Lakes Region.
Adapted from press releases by Louise Fordham
Read the article online at: https://www.worldcement.com/europe-cis/27052015/crh-enters-into-binding-agreement-with-lafarge-holcim-904/