LafargeHolcim update: European Commission has been formally notified of merger plans

Lafarge and Holcim have formally notified the European Commission of their proposed merger in order to obtain regulatory approval. With this notification, Holcim and Lafarge have now completed all necessary notifications with regulatory authorities worldwide.

During the constructive pre-notification discussions, which Lafarge and Holcim have had with the European Commission, the list of proposed assets for divestment in Europe has been slightly amended. Compared with the list of assets presented on 7 July 2014, the two companies now propose:

• To retain Lafarge's Mannersdorf plant located in Austria.
• To divest all of Holcim's operations in Slovakia.

In the rest of the world, the proposed list of assets remains the same, with the exception of the Philippines, as announced by the boards of directors of Lafarge Republic Inc. and of Holcim Philippines Inc (see amended list below).

In parallel to the regulatory process, Holcim and Lafarge are in ongoing negotiations with potential buyers of the assets that are proposed for divestment.

As previously stated, the proposed divestments are subject to review and approval of the regulatory authorities and to the agreement of joint venture partners where relevant. As announced, both companies will continue to consider whether further divestments would be necessary in areas where there are overlaps or to satisfy regulatory requirements.

The divestment process will be carried out in the framework of the relevant social processes and ongoing dialogue with the employee representatives’ bodies.

The closing of the planned merger is expected in 1H15.

Amended list of proposed divestments

Europe

• France: Holcim's assets in metropolitan France, except for its Altkirch cement plant and aggregates and ready-mix sites in the Haut-Rhin region; 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.
• UK: Lafarge Tarmac assets with the possible exception of the Cauldon plant and certain associated assets.

Outside Europe

• Canada: Holcim's assets.
• Mauritius: Holcim's assets.
• The Philippines: Major stockholders of Lafarge Republic, Inc. (namely Lafarge Holdings Philippines, Inc., South Western Cement Ventures, Calumboyan Holdings, Inc., and Round Royal, Inc.) intend to offer to sell their respective shares in the corporation to potential third party buyer(s), subject to agreement on the terms and conditions of the sale and completion of the global merger between Holcim Ltd and Lafarge SA. In parallel, Lafarge Republic, Inc. will study, consider and negotiate the sale to Holcim Philippines Inc., of 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 specific assets, contracts or businesses as may be identified and negotiated between the parties.
• Brazil: assets from both Holcim and Lafarge, which include three integrated cement plants and two grinding stations (with a total of 3.6 million tpa cement capacity), as well as some ready-mix plants located in the Southeastern region of Brazil.

Source: Lafarge press release. Posted by Louise Fordham

Read the article online at: https://www.worldcement.com/europe-cis/28102014/lafarge-holcim-formally-notify-eu-commission-of-merger-plans-745/