Holcim, Lafarge detail asset sales for $40 billion merger

Holcim and Lafarge, seeking antitrust backing for a planned $40 billion merger, outlined an initial list of assets for sale to cut the importance of Europe to 20 per cent of combined revenue and win regulatory backing.

As part of a programme of disposals, Anglo American will sell Lafarge its stake in a tarmac and aggregates venture for a minimum of £885 million as a prelude to Holcim and Lafarge divesting most of that business, the companies said in a statement today.

“The future LafargeHolcim group will have a significant and balanced industrial base in Europe,” the companies said.

“These proposed divestments are subject to review and further discussions with the regulatory authorities.”

The French and Swiss companies are looking to complete the merger in the first half, with Europe accounting for the bulk of the divestments as the region has the biggest overlap.

With the list of assets made public, the process of finding buyers can begin in earnest.

Switzerland-based Holcim has hired Credit Suisse Group and HSBC Holdings, and Paris- based Lafarge is working with Morgan Stanley and BNP Paribas , people with knowledge of the situation said June 20.

Combined, the assets may fetch as much as €5 billion, they said. European plants earmarked for divestment span sites from Austria to Serbia, including assets in France, Germany and Romania.

Outside of the regions, disposals will include sites in Canada, Mauritius and Brazil.

Cement rivals and private-equity firms are expected to look at the assets. Companies include Eurocement Group, owned by Georgia-born Filaret Galchev and Holcim’s second-largest shareholder, Germany’s HeidelbergCement, Ireland’s CRH and Cemex SAB, the biggest cement maker in the Americas, the people said last month.

Bloomberg