Holcim, Lafarge agree new terms for €41bn merger

Holcim and Lafarge have ironed out fresh terms over their proposed €41bn merger, which would create the world's biggest cement company.

Both parties have agreed to a ratio of 9 Holcim shares for 10 Lafarge shares, a spokesperson for Holcim said Friday. It follows an agreement on Thursday over executive appointments, an issue which threatened to derail the mega-merger at one point.

The original merger talks held last year had called for a 1-for-1 share exchange ratio with Lafarge Chief Executive Bruno Lafont to be appointed as the CEO of the merged company, and seven board members apiece from both companies.

However, Lafont’s proposed appointment became a thorny issue. Both companies have now said Lafont would take on a different role. Under the new agreement, Lafont will be co-chairman with Holcim chairman Wolfgang Reitzle, while Lafarge's board will propose a CEO candidate who is expected to have wider acceptance.

The appointment would be communicated in “due course”, possibly at the time of filing of the public offer to the Lafarge shareholders. Lafarge's board has passed the revised merger terms by unanimous vote, the company confirmed.