Lafarge, Holcim start merger of Bangladesh units

Lafarge and Holcim have started the merger process of their cement companies in Bangladesh in line with their global amalgamation plan.

World's leading cement makers, France's Lafarge and Switzerland's Holcim, merged in July last year to form LafargeHolcim, which owns the majority stake in Holcim Bangladesh.

LafargeHolcim and Cementos Molins of Spain together own Surma Holding, which is a majority share holder of Lafarge Surma Cement in Bangladesh.

Last week, Lafarge Surma Cement announced that it is starting discussions with LafargeHolcim to explore the opportunity of combining its business with Holcim Bangladesh.

“A potential combination of Holcim Bangladesh and Lafarge Surma Cement is expected to create a significant synergy and further position both Holcim Bangladesh and Lafarge Surma Cement for future growth in Bangladesh,” it said in a web posting on the Dhaka Stock Exchange website.

However, Lafarge Surma Cement said no decision has been taken yet on the merger.

“Furthermore, any potential transaction will be subject to due diligence, assessment of synergy potential, as well as necessary regulatory and other approvals,” it added.

Lafarge Surma Cement said it will provide updated information to the regulatory authorities and shareholders as and when required, in conformity with applicable laws.

It was listed on the Bangladesh stockmarket in 2003.

Its net profit fell to Tk 228.95 crore in 2015, from Tk 281.98 crore a year earlier. Each Lafarge share was traded between Tk 75.4 and Tk 74, before closing at Tk 74.7 on the premier bourse yesterday.

Sponsors hold a 64.68 percent stake in the company, while institutions 14.33 percent, foreign investors 1.44 percent and general public 19.55 percent, according to DSE.