Eurocement backs Holcim-Lafarge merger

Eurocement Holding AG, Holcim Ltd's second-largest shareholder, said it supports the Swiss cement maker's planned merger with Lafarge SA .

"Having analysed all advantages and disadvantages of a possible creation of the biggest global construction materials player we think that the prospective of the development of the combined company is very positive, so we will support the merger," Eurocement said in a statement.

Eurocement, which has a 10.8 per cent stake in Holcim, said it intends to keep actively participating in the work of the merged company.

The backing from Eurocement is a boost to Holcim as it seeks to win the support of two-thirds of investors at a shareholder meeting on 8 May to approve a fundraising to pay for the merger.

Eurocement-owner Filaret Galchev had earlier expressed concerns about the terms of the Holcim-Lafarge deal, but on 16 April  Eurocement said it would nominate Galchev for a position on the board of the combined group - a sign that Eurocement was softening its resistance to the merger. (Source: Reuters)