LafargeHolcim CEO to step down after Syria probe

The world's largest cement maker is looking for a new CEO after current LafargeHolcim boss Eric Olsen announced he was resigning in the wake of an investigation into the company’s operations in war-torn Syria.

Olsen will depart the position in July as the company attempts to make a success of the merger between industrial giants Lafarge and Holcim. The firms have struggled to cement the merger with several setbacks since the agreement in July 2015.

In March, the corporation admitted to having funded armed groups in Syria in order to ensure its operations in Jallabiya would continue to function.

The Franco-Swiss company conducted an internal investigation into a barrage of allegations made by various sources that it had been financing the campaigns of such groups in Syria.

In March the corporation admitted to having funded armed groups in Syria

"While I was absolutely not involved in, nor even aware of, any wrongdoing I believe my departure will contribute to bringing back serenity to a company that has been exposed for months on this case," Olsen said in a statement on Monday.

The company itself cleared Olsen of any wrongdoing in the probe, but added that a variety of actions taken in order to continue operations at the plant were "unacceptable".

In a statement management added that "significant errors of judgment were made that contravened the applicable code of conduct".

Analysts at Deutsche Bank commented ahead of the official announcement that Olsen’s departure would impact its share price.

"With Olsen beginning to build his reputation, and no obvious successor, we see this newsflow as negative for the group," Deutsche Bank said.

Shares rose slightly during morning trading on the Swiss SMI Index, after having gained around 10% this year.