Holcim, Lafarge mull over merger of businesses in PHL 

The Philippine units of Swiss cement group Holcim and French rival Lafarge are working on merging some of their businesses as a way for both companies to take advantage of synergies and opportunities in the construction industry.

 

In separate disclosures to the Philippine Stock Exchange Monday, Holcim Philippines Inc. and Lafarge Republic Inc. said their boards authorized both companies to "explore, study and consider the combination of the businesses."

 

This will allow the firms to avail themselves of "the resulting synergies and opportunities, and in the course of such study, determine optimal structures to implement such combination," the disclosure read.

 

The Holcim board gave president and CEO Eduardo A. Sahagun the authority to conduct a study of such a merger and appoint financial, legal and technical experts for such an undertaking.

 

The latest decision to merge other businesses came nearly three months after the parent firms decided to go for a merger.

 

Last April, Holcim and Lafarge announced merger plans that which will produce LafargeHolcim and  make it a dominant supplier in the global construction industry.

 

Lafarge will, however, excluded from the merger two cement plants in Norzagaray, Bulacan and the plant in Iligan owned by subsidiary Lafarge Iligan Inc.

 

 

Lafarge said those assets were being considered for divestment, depending on the agreement covering the terms and conditions divestment - including the purchase price with the potential interested third party buyer or buyers – and the completion of the combination.  – VS, GMA News