Holcim and Lafarge have confirmed that they are in advanced discussions regarding a "possible combination."

The world's two leading cement majors said in separate releases that: "given the strong complementarity of their portfolio and the cultural proximity between the two companies, there is rationale in considering a potential merger that could deliver significant benefits to customers, employees and shareholders."

"The discussions are based on principles consistent with a merger of equals which build on the strengths and identities of the two companies," the companies added.

Both producers stressed that no agreement has yet been reached adding that "no assurance can be given that these discussions will lead to a definitive agreement."