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Cement Industry: Holcim and Lafarge Receive Clearance to Merge from Indian Competition Authorities

ZURICH/SWITZERLAND and PARIS/FRANCE, April 10, 2015 – Two large players of the building materials industry unite to create an even bigger conglomerate. However, LafargeHolcim has to put up two of its production facilities in India for sale.

In early April, Lafarge and Holcim have received clearance from the Competition Commission of India (CCI) for their proposed merger. As part of the deal, a package of asset divestments has been agreed with the CCI. This means Lafarge has to sell one cement plant one grinding station in Eastern India with a total of approximately 5 million tonnes annual cement capacity. Currently, Sonadih cement plant and Jojobera grinding station are being considered.

The divestment process will be carried out in the framework of the relevant social processes and ongoing dialogue with the employee representatives’ bodies. The divestment process will be completed subject to the closing of the merger between Lafarge and Holcim. As announced, the closing of the planned merger is expected in July 2015, aiming to create the most balanced and diversified portfolio in the industry, as Lafarge and Holcim stress.

Focus on India

The new company will be operating in 90 countries and India is proclaimed to be an important market for the future LafargeHolcim Group.  With a balanced portfolio in cement, aggregates, and ready-mix concrete, the combined Group will have a cement capacity of around 68 million tonnes in India.
Holcim considers itself a global leader in the manufacture and distribution of cement and aggregates (crushed stone, gravel, and sand), as well as other activities, including ready-mix concrete, asphalt, and associated services. The company holds majority and minority shareholdings in some 70 countries and on every continent. In 2013, Holcim recorded net sales of over 19.1 billion Swiss francs.
Lafarge employs 63,000 people in 61 countries, and posted sales of €12.8 billion in 2014.

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