The European Commission cleared the merger of cement companies Holcim and Lafarge by a Phase I decision on Dec. 15, 2015, despite their positions as the first and second-largest such companies in the European Union. The merger will create the largest cement manufacturer in the world, and the new company, LafargeHolcim, will be active in over 90 countries.
The EC decision on the Lafarge-Holcim merger followed a lengthy period of pre-notification discussions between the companies and the Commission, during which the Commission expressed its concerns that the merger would have a detrimental effect on competition.
However, the companies were able to present a package of remedies that addressed these concerns. In return for clearance, the companies agreed to divest parts of Lafarge's business activities in Germany, Romania and the UK as well as parts of Holcim's businesses in Slovakia, Hungary, France, Spain and the Czech Republic. Worldwide, the parties expect to sell 10 to 15 percent of their combined assets.
Closing is subject to the Commission's approval of the buyers of Holcim and Lafarge's assets and is expected in the first half of 2015.
The Commission's press release announcing the approval of the merger is available here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
