Holcim and Lafarge agree to blockbuster merger

|By:, SA News Editor

Holcim (HCMLY) and Lafarge (LFRGY), the world's two biggest cement makers, have agreed to an all-share merger of equals that will create a company with over $40B in annual sales and a market cap of $50B.

To assuage antitrust concerns, the companies plan to sell assets worth 10-15% of their global EBITDA, which stands at €6.5B combined.

Lafarge CEO Bruno Lafont will lead the new firm - to be called LafargeHolcim, and Holcim's Wolfgang Reitzle will become Chairman.

The companies expect the transaction to lead to synergies of over €1.4B ($1.9B) and to close in H1 2015. (PR)