Holcim Said to Propose Changes to Lafarge to Rescue Cement Deal
2015-03-15 22:49:58.472 GMT
By Aaron Kirchfeld, Francois de Beaupuy and Matthew Campbell
(Bloomberg) -- Switzerland’s Holcim Ltd. has proposed
changes to the share-exchange ratio and management for a merger
with Lafarge SA as the two companies try to save a deal that
would create the world’s biggest cement maker, according to
people familiar with the matter.
Having originally agreed on a 1:1 exchange ratio for the
all-share merger almost a year ago, the Swiss company proposed
that Lafarge adopt a 0.875 weighting, said the people, who asked
not to be identified because negotiations are private. Holcim is
also pushing for a change in management including the chief
executive officer of the merged company, one of the people said.
Bruno Lafont, the CEO of Lafarge, had been picked to lead the
new entity.
Lafarge has signaled it will make a counter proposal that
would trim its weighting to 0.93 to get the deal done, the
people said. Representatives for the companies are scheduled to
meet as early as tomorrow as they try to reach a compromise as
early as this week, they said. Talks are ongoing and the
structure could still change, the people said, adding that both
sides could also fail to reach an agreement.
The companies are discussing resetting the merger terms to
account for Holcim’s superior performance since the deal was
announced in April. Investors on both sides remain keen to see
the $40 billion merger go through, and there is pressure to
reach an accord before CRH Plc investors assemble on March 19 to
approve the purchase of a large chunk of the combined business
that Holcim and Lafarge agreed to sell to comply with antitrust
demands, the people said.
A spokesman for Holcim declined to comment while Lafarge’s
representatives couldn’t be immediately reached outside of
regular business hours.
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Top Stories:TOP<GO>
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--With assistance from Jan-Henrik Förster in Zurich.
To contact the reporters on this story:
Aaron Kirchfeld in London at +44-20-3525-8830 or
akirchfeld@bloomberg.net;
Francois de Beaupuy in Paris at +33-1-5365-5051 or
fdebeaupuy@bloomberg.net;
Matthew Campbell in London at +44-20-3525-8684 or
mcampbell39@bloomberg.net
To contact the editors responsible for this story:
Simon Thiel at +44-20-3525-2814 or
sthiel1@bloomberg.net
Andrew Noël
2015-03-15 22:49:58.472 GMT
By Aaron Kirchfeld, Francois de Beaupuy and Matthew Campbell
(Bloomberg) -- Switzerland’s Holcim Ltd. has proposed
changes to the share-exchange ratio and management for a merger
with Lafarge SA as the two companies try to save a deal that
would create the world’s biggest cement maker, according to
people familiar with the matter.
Having originally agreed on a 1:1 exchange ratio for the
all-share merger almost a year ago, the Swiss company proposed
that Lafarge adopt a 0.875 weighting, said the people, who asked
not to be identified because negotiations are private. Holcim is
also pushing for a change in management including the chief
executive officer of the merged company, one of the people said.
Bruno Lafont, the CEO of Lafarge, had been picked to lead the
new entity.
Lafarge has signaled it will make a counter proposal that
would trim its weighting to 0.93 to get the deal done, the
people said. Representatives for the companies are scheduled to
meet as early as tomorrow as they try to reach a compromise as
early as this week, they said. Talks are ongoing and the
structure could still change, the people said, adding that both
sides could also fail to reach an agreement.
The companies are discussing resetting the merger terms to
account for Holcim’s superior performance since the deal was
announced in April. Investors on both sides remain keen to see
the $40 billion merger go through, and there is pressure to
reach an accord before CRH Plc investors assemble on March 19 to
approve the purchase of a large chunk of the combined business
that Holcim and Lafarge agreed to sell to comply with antitrust
demands, the people said.
A spokesman for Holcim declined to comment while Lafarge’s
representatives couldn’t be immediately reached outside of
regular business hours.
For Related News and Information:
Top Stories:TOP<GO>
For industrial news in Europe:TNI MAC EUROPE <GO>
--With assistance from Jan-Henrik Förster in Zurich.
To contact the reporters on this story:
Aaron Kirchfeld in London at +44-20-3525-8830 or
akirchfeld@bloomberg.net;
Francois de Beaupuy in Paris at +33-1-5365-5051 or
fdebeaupuy@bloomberg.net;
Matthew Campbell in London at +44-20-3525-8684 or
mcampbell39@bloomberg.net
To contact the editors responsible for this story:
Simon Thiel at +44-20-3525-2814 or
sthiel1@bloomberg.net
Andrew Noël