Displaying items by tag: Merger
LafargeHolcim merger gathers pace
07 April 2014Worldwide: More details have emerged over the weekend regarding the proposed merger of Lafarge and Holcim, with the name LafargeHolcim mentioned by key staff. The discussions look set to lead to a company with combined sales of around Euro32bn and earnings before interest, taxes, depreciation and amortisation (EBITDA) of Euro6.5bn.
"This proposed merger is a once in a lifetime opportunity to deliver substantially better value to customers with more innovation, a wider range of products and solutions and more sustainability and enhanced returns to shareholders," said Rolf Soiron, chairman of Holcim. "LafargeHolcim will be uniquely positioned to take advantage of growth in developed markets and the world's fastest growing economies by supplying the materials that will enable the construction industry to meet the challenges of the future."
"By combining Holcim's experienced teams, complementary geographies and innovative expertise with ours, we propose to set up the most advanced group in the construction industry, for the benefit of our clients, our employees and our shareholders," said Bruno Lafont, chairman and CEO of Lafarge. "I am confident that this merger of equals provides a unique opportunity to rapidly create the most advanced platform in our industry with outstanding synergies. With a best-in-class international portfolio, robust balance sheet and strong governance, the new group will offer higher growth and low risk, thus creating more value.'
Unofficial sources have suggested that the weekend's meetings involved detailed discussions regarding the sale of some parts of the companies' assets to conform to national and regional anti-monopoly regulations.
Subject to shareholder and regulatory approvals and other customary authorisations completion is to take place by the end of the first half of 2015.
Holcim and Lafarge discuss possible combination
04 April 2014Worldwide: Holcim has confirmed that Lafarge and Holcim are in advanced discussions regarding a possible combination.
Holcim and Lafarge have stated that, given the strong complementarity of their portfolio and the cultural proximity between the two companies, there is rationale in considering a potential merger that could deliver significant benefits to customers, employees and shareholders. Holcim said that their discussions have been based on principles consistent with a merger of equals, which would build on the strengths and identities of the two companies.
No agreement has yet been reached and no assurance can be given that these discussions will lead to a definitive agreement. Holcim stated that it will inform the public of any material developments in this respect.
Ambuja Cements and ACC integration to save US$14.4m
03 December 2013India: Following the successful vote to re-structure Holcim's India operations, Ambuja Cements and ACC, the integration of common functions across the two companies has begun.
Holcim wants to eradicate the duplication of roles across the two companies that will aid in savings of US$144m through synergies in supply chain and fixed cost optimisation. The integration will see big changes for some of the two companys' 10,000 employees. Some will be relocated to the group's upcoming facilities as the cement makers have no plans to cut spending.
"The restructuring is about deriving further value from the Indian platform," said Anantharam Gopalkrishnan, vice president for the treasury and tax at Ambuja Cements.
Holcim intends to keep the two brands, Ambuja Cement and ACC, independent. It does not plan to launch the Holcim brand in India or market the two brands with the Holcim tag. When the integration process is completed, which is currently scheduled for 2015, Holcim intends to evaluate the full merger of the operating companies into one unified entity.
Holcim looks at foreign funds to cement US$2.32bn Ambuja deal
20 November 2013India: Domestic institutions, which together hold 9% in Ambuja Cements and have voted against the Ambuja-Holcim merger deal, have left the whole transaction on a knife-edge as Holcim is now banking on foreign funds to rescue it.
For the US$2.32bn deal to go through, Holcim needs approval from the majority of Ambuja Cements' minority shareholders.
This is the first merger and acquisition transaction to go under the hammer of minority shareholders after India's capital market regulator, Sebi, empowered them to approve or reject transactions in February 2013.
The voting process, which ran for three weeks, closed on 19 November 2013 and early indications suggest that most of the Indian minority shareholders have voted against the deal.
LIC, the biggest Indian institutional investor in Ambuja Cements, GIC and other public sector insurance companies have voted against the deal that would enable Ambuja Cements to emerge as Holcim's flagship firm in India.
The exact response of foreign institutions such as Aberdeen, JP Morgan and Oppenheimer, who together own about 30% stake in Ambuja Cements could not be ascertained.
Ambuja Cements declined to comment on the voting results, which will be officially released on 21 November 2013.
Holcim's India operation restructuring plan gets FIPB nod
14 November 2013India: Holcim has received approval from the Foreign Inevestment Promotion Board (FIPB) to merge holding firm Holcim India with its unit Ambuja Cements as part of a plan to restructure its India operations.
Holcim, which has majority stakes in two leading Indian cement makers, ACC and Ambuja Cements, announced in July 2013 its plan to consolidate operations in a cash and share deal in a two-step process, valued at about US$2296m. However, since Holcim's proposal is more than US$190m, it required approval of the Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Manamohan Singh.
Holcim said that as part of the restructuring process, Holcim India's over 50% stake in ACC will go to Ambuja and Holcim's stake in Ambuja will rise to 61.4% from a little over 50% following the merger of Holcim India with Ambuja.
Ambuja Cements would merge Holcim India through cash and share transactions. Ambuja will first acquire a 24% stake in HIPL for US$554.1m.
Cimpor and InterCement joined in Brazil
04 February 2013Brazil: The Portuguese cement production group Cimpor has announced the merger of two of its subsidiaries in Brazil, namely Cimpor Cimentos do Brasil and InterCement Brasil. Both companies are fully and indirectly owned by Cimpor, which itself is controlled by Brazil's Camargo Corrêa. The merger project received the green light of Cimpor's board of directors on 30 January 2013.
"The merger of these two companies in the Cimpor universe will make it possible to create joint value, promoting synergies, leading to improved operating efficiency and quality of services offered to the Brazilian market," said Cimpor said in a statement filed with the Portuguese market regulator.
The deal to merge the two subsidiaries comes after an asset swap between Cimpor, InterCement and Votorantim that took place in 2012.