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Holcim, Lafarge propose asset disposals


July 7, 2014
By Lafarge/Holcim

July 7, 2014, Zurich/Paris – Lafarge and Holcim have taken a
further step towards their planned merger of equals to create LafargeHolcim,
the most advanced and innovative group in the building materials industry.

July 7, 2014, Zurich/Paris – Lafarge and Holcim have taken a
further step towards their planned merger of equals to create LafargeHolcim,
the most advanced and innovative group in the building materials industry.

 

A Divestment Committee was set up by both companies,
following the announcement of the planned merger on April 7, with the aim of
taking forward the divestment process. It has drawn up a list of proposed asset
disposals, to anticipate potential competition authorities’ requirements.
The proposal includes Holcim's Canadian assets.

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The announcement represents a major part of the total assets
that the two companies aim to divest.

 

The two companies are proposing the following disposals:

 

Europe

• Austria: Lafarge’s Mannersdorf cement plant 

• France: Holcim’s assets in metropolitan France, except for
its Altkirch cement plant and aggregates and readymix sites in the Haut-Rhin market;
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

• the UK: Lafarge Tarmac assets with the possible exception
of one cement plant

 

The future LafargeHolcim group will have a significant and
balanced industrial base in Europe – around 20% of its revenues – within its
overall global footprint, enabling it to take advantage of the European
economic recovery.

 

Other countries

• Canada: Holcim’s assets 

• Mauritius: Holcim’s assets

• The Philippines: the associated companies of Lafarge and
Holcim (Lafarge Republic Inc. – LRI and Holcim Philippines Inc.) are exploring
the combination of their businesses other than LRI’s Bulacan, Norzagaray, and
Iligan plants which are considered to be divested as part of such combination.

• Brazil: Holcim and Lafarge will file soon with the
Brazilian regulator, CADE, and propose a comprehensive and high quality package of
divestments.

 

Both companies will continue to consider whether divestments
would be necessary where there might be overlaps or depending on regulatory requirements.

 

These proposed divestments are subject to review and further
discussions with the

regulatory authorities and to the agreement of our business
partners when relevant.

 

The divestment process will be carried out in the framework
of the relevant social processes and ongoing dialogue with the employee
representatives’ bodies and will be conducted in parallel to discussions with
the competition authorities and potential buyers. The divestment process will
be completed subject to the closing of the merger between Holcim and Lafarge.

 

This announcement follows the formal signing of the
combination agreement, marking the conclusion of the merger terms announced on
April 7, 2014. The combination remains conditional upon the required regulatory
and other customary consultations and approvals.

 

As announced, the closing of the planned merger is expected
in H1 2015, aiming to create the most balanced and diversified portfolio in the
industry, operating in 90 countries and creating superior value for its
stakeholders.