Two months after the announcement of their planned merger, Lafarge and Holcim have revealed the list of proposed divestments.
In Europe the merged entity aims to have “a significant and balanced industrial base in Europe – around 20 per cent of its revenues – within its overall global footprint, enabling it to take advantage of the European economic recovery,” according to a joint statement. LafargeHolcim plans to sell Lafarge’s Mannersdorf works in Austria as well as the Lafarge Tarmac assets in the UK with the possible exception of one cement plant. In addition, the France-based producer’s assets in Germany and Romania, and Holcim’s Hungarian operating assets will not form part of the new set-up. In France, Holcim’s assets in metropolitan France, apart from its Altkirch cement plant and aggregates and readymix sites in the Haut-Rhin market, will be sold. Lafarge's assets on Réunion wil also be divested, except for its interests in Ciments de Bourbon.
Outside Europe, Holcim is expected to divest its Canadian and Mauritian assets. In the Philippines, the associated companies of Lafarge and Holcim, Lafarge Republic Inc and Holcim Philippines, are considering the combination of their businesses. This move is likely to lead to the divestment of Lafarge’s Bulacan, Norzagaray and Iligan plants. Furthermore, Holcim and Lafarge expect to file soon with CADE, the Brazilian market regulator, and propose a “comprehensive and high-quality package of divestments”.
The proposed divestments remain subject to review and further discussions with regulatory authorities. Where there may be overlaps or regulatory requirements for additional asset sell-offs, both companies will continue to consider further divestments.
