Quinn and Lagan Cement propose merger

Ireland-based Quinn Building Products and the Lagan Cement Group have signed a memorandum of understanding that may lead to a merger of the two groups.

The businesses, which will become part of the proposed joint venture, are the combined cement and building products businesses based in Ballyconnell, Derrylin, Kinnegad, Belfast, Cork in Ireland and Benelux.

Quinn Therm, Quinn Litepac, Quinn Tarmac and Lagan Sand are not included in this proposal.

Commenting on the proposed JV, the CEO of Quinn Manufacturing Group, Paul O'Brien and the CEO of Lagan Cement Group, Jude Lagan, said: "By combining two stable Irish businesses the proposed JV will create a sustainable independent cement manufacturer that can continue to support its customers on a competitive basis."

The joint venture discussions are likely to take up to three months to complete and will involve the development of a business plan to combine the Quinn/Lagan cement and building products operations.

"Whilst it is the intention of both parties to conclude a JV Agreement, no certainty can be assumed prior to the completion of these discussions and the relevant Competition Authority approvals," the statement said.