Wednesday, January 28, 2015   

Cement heavyweights create global supplier raking in 32b euros annual sales
(04-07 16:29)

Swiss cement group Holcim and French rival Lafarge are to merge creating a dominant supplier of cement for concrete to the global construction industry.
The deal, described in a statement today as “a merger of equals,’’ and a major event in the global construction industry, will be based on the offer of one Holcim share for one Lafarge share.
The two groups made a commitment to sell assets to pre-empt anti-trust objections from competition authorities, AFP reports.
On the Swiss stock market, the price of Holcim shares jumped 5.24 percent to 84.40 Swiss francs in initial trading and in Paris, Lafarge shares were up 4.57 percent to 67.02 euros. Their stocks had already reacted to rumors of merger talks on Friday.
The new company will be called LafargeHolcim and “will have a unique position in 90 countries and will be evenly balanced between developing countries and countries with strong growth,'' the companies said in a join statement.
Figures in the statement show that the new giant will employ 136,000 people.
Holcim Chairman Rolf Soiron said the merger offered “a once in a lifetime opportunity to deliver substantially better value to customers with more innovation, a wider range of products and solutions,’’ and to improve returns for shareholders.
Lafarge chief executive Bruno Lafont said the companies would “set up the most advanced group in the construction industry, for the benefit of our clients, our employees and our shareholders.''
The new entity would have annual sales of 32 billion euros and underlying profits on a basis of earnings before interest, tax depreciation and amortisation, of 6.5 billion euros.
The deal was expected to generate economies of scale of 1.4 billion euros over three years.
The deal had the unanimous support of both boards and of core shareholders.
The new firm's chairman will be Holcim's Wolfgang Reitzle, with Lafarge's Lafont becoming its chief executive officer.
Holcim and Lafarge will each has seven seats on the new board.
Founded in Switzerland in 1912, Holcim employs 71,000 people, with production sites in about 70 countries and a market presence on every continent.
In notched up net sales of 19.7 billion Swiss francs in 2013.
Lafarge began as a French limestone-quarrying company in 1833, and now employs 65,000 people in 64 countries, with annual sales of 15.8 billion euros.

Other Business breaking news:
Hang Seng ends higher (01-28 16:15)
German consumer confidence hits 13-year high: survey (01-28 15:50)
Canon posts 10% profit rise on weak yen (01-28 15:49)
Nintendo says Apr-Dec net profit surges six-fold (01-28 15:48)
SK Hynix Q4 profit doubles to record level (01-28 15:19)
Whisky industry worth billions to British economy: report (01-28 14:47)
Nikkei reverse losses at close (01-28 14:21)
Australian core inflation eases interest rate cut pressure (01-28 12:33)
Hang Seng up by break (01-28 12:20)
Yuan joins top 5 most-used global currencies (01-28 11:34)

More breaking news >>

© 2015 The Standard, The Standard Newspapers Publishing Ltd.
Contact Us | About Us | Newsfeeds | Subscriptions | Print Ad. | Online Ad. | Street Pts


Home | Top News | Local | Business | China | ViewPoint | CityTalk | World | Sports | People | Central Station | Spree | Features

The Standard

Trademark and Copyright Notice: Copyright 2015, The Standard Newspaper Publishing Ltd., and its related entities. All rights reserved.  Use in whole or part of this site's content is prohibited.   Use of this Web site assumes acceptance of the
Terms of Use, Privacy Policy Statement and Copyright Policy.  Please also read our Ethics Statement.