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EU: Most of Lafarge, Holcim divestitures to occur in Europe

 |  July 7, 2014

Cement conglomerates Lafarge and Holcim confirmed Monday that they are looking to divest a combined $4 billion worth of assets to secure regulatory approval for their proposed merger.

France-based Lafarge and Switzerland-based Holcim confirmed earlier reports that asset sales could top $4 billion, but on Monday the companies offered more insight into their plans. The sales will mostly occur across Europe.

Lafarge is set to sell all of its German operations, while Holcim will sell nearly all of its France units, according to reports.

Without the sales, the companies’ $50 billion merger would lead to a company with more than 60 percent market share in several nations, according to reports. Experts expect lengthy reviews of the tie-up.

The European Commission has already signaled plans to take its time to review the deal, according to reports.

The news was announced simultaneously with another announcement from mining conglomerate Anglo American, which said it plans to sell its cement operations to Lafarge in a $1.5 billion deal. The divestiture is dependent upon the Lafarge/Holcim deal.

Full content: Wall Street Journal and Reuters

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