Holcim and Lafarge merge

Holcim and Lafarge launched their new combined building materials company on Wednesday but they are still undecided about the logistics of the merger in Bangladesh.

Following the successful completion of the merger between the two cement giants and the listing of the new LafargeHolcim shares in Zurich and Paris, the new group will now work towards creating the highest performing company in the building materials industry, according to a statement.

“Now as LafargeHolcim, we will step into the next phase of our transformation to become the leader in every respect -- a company that has a positive impact on the world and can make a real difference for its customers, its employees, its shareholders and society,” said Eric Olsen, chief executive officer of LafargeHolcim.

It took almost a year to overcome the series of regulatory hurdles and challenges over the terms of the merger.

LafargeHolcim and Cementos Molins of Spain own, through their joint venture Surma Holding, a majority of the shares of Lafarge Surma Cement. LafargeHolcim is also the majority shareholder of Holcim Bangladesh.

The potential combination of businesses of Lafarge Surma Cement and Holcim Bangladesh is subject to various corporate and regulatory approvals, according to the statement.

However, it said, nothing has been decided at this stage. Should “it be the case, it will be decided by the appropriate corporate bodies, in due time, and with the relevant communication required under the applicable regulations”.

Each share of Lafarge Surma Cement, which was listed in Bangladesh stockmarket as a green field company in 2003, traded between Tk 112.90 and Tk 115, before closing at Tk 114.50 on the Dhaka Stock Exchange on Tuesday, the last trading day before the Eid holidays.