Holcim's No. 2 shareholder reportedly plans to vote against Lafarge merger

Eurocement Holding AG, the second-largest shareholder in Holcim Ltd, plans to vote against the Swiss company's merger with Lafarge SA unless the financial terms of the deal are altered, according to a person familiar with situation.

Eurocement, which holds 10.82 per cent of Holcim, believes the terms of the deal continue to undervalue the Swiss company despite a revision of the agreement a little more than a week ago, the person said. The deal, which was originally structured as a one-for-one share swap, now offers nine Holcim shares for 10 Lafarge shares.

The opposition comes more than a week after Holcim and Lafarge altered the terms of their merger, following renegotiation over the financial terms and leadership of the combined company. Lafarge CEO Bruno Lafont was originally named to head the combined business, but will now serve as non-executive co-chairman.

The merger is subject to approval by two-thirds of Holcim shareholders. An extraordinary shareholders meeting is set for 8 May 2015.