Global cement giants Holcim and Lafarge disclosed their plans to merge their business operations by next year. According to the official statements released by the Swiss and French cement majors, the to be established LafargeHolcim company will emerge as the biggest company in the cement, concrete and gravel sectors.
In addition, to streamline the new company’s operations, the cement majors plan to invest some of their operations in ‘pro-active divestment process. The merger will enhance performance through incremental synergies amounting more than $1.9 billion on a full run-rate basis in a three-year period with one-third in the first year, stated Holcim’s official disclosure.
The new company will be based in Switzerland and the firms plan to swap shares at a ratio of one Holcim share for one Lafarge share.