Holcim, Lafarge in talks about potential merger

|By:, SA News Editor

Holcim (HCMLF +2.4%) and Lafarge (LFRGY +6.7%), the world’s two largest cement makers, are exploring a potential merger of equals that would create a company with a combined market value of more than $50B, Bloomberg reports.

Holcim and Lafarge combining would allow the companies to cut production costs by melding production capabilities and cutting excess capacity, but  a merger could face heavy antitrust issues from multiple governments.

Peers are rising on the news: CX +4.2%, VMC +2.1%, MLM +3.4%, CRH +2.8%, GVA +0.3%.