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Lafarge, Holcim combine in ‘merger of equals’


April 11, 2014
By Rock to Road

April 7, 2014, Zurich/Paris – Holcim and Lafarge have
announced their intention to combine the two companies through a merger of equals,
unanimously approved by their respective Board of Directors and fully supported
by the core shareholders of both companies.

April 7, 2014, Zurich/Paris – Holcim and Lafarge have
announced their intention to combine the two companies through a merger of equals,
unanimously approved by their respective Board of Directors and fully supported
by the core shareholders of both companies.

 

LafargeHolcim would have an enhanced presence in the global
building materials sector with a number one position globally across cement,
concrete and aggregates and new opportunities to optimize production and
commercial networks.

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Lafarge and Holcim pro forma combined sales amount to c. CHF
39bn / EUR 32bn and Ebitda to c. CHF 8bn / EUR 6.5bn.

 

The new Group plans to increase its offer to customers
through innovation delivered on an expanded scale, best in class R&D and a
combined portfolio of solutions and products. Both companies have pioneered
sustainability and climate change mitigation in the industry and are committed
to take it to the next level.

 

The proposed merger would enable optimized capital
allocation across the expanded footprint to drive improved ROCE, and strong
cash-flow generation and the robust balance sheet will provide financial
strength. LafargeHolcim will maintain an attractive dividend policy.

 

LafargeHolcim expects the following annual synergies:

  • CHF 1.7bn / EUR 1.4bn of incremental synergies on a full
    run-rate basis phased in over three years with one third in year one
  • CHF 1.2bn / EUR 1.0bn at EBITDA level through best
    practices, scale and cross- utilization of innovative products and solutions
  • CHF 240m / EUR 200m in financial savings
  • CHF 240m / EUR 200m in capital expenditure optimization.


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