5th May 2015 05:24
JONA (Alliance News) - Lafarge and Holcim announced that they have received final approval for their proposed merger from the competition authorities in the US and Canada.
All competition approvals necessary for closing the transaction have now been obtained ahead of the expected closing in July 2015.
Following the regulatory assessment in all key jurisdictions, Holcim and Lafarge can now present a final list of divestments to satisfy regulatory requirements.
These divestments remain subject to the completion of the merger, including a successful public exchange offering to Lafarge's shareholders and approval by Holcim's shareholders.
The Federal Trade Commission said that Holcim Ltd. and Lafarge S.A. have agreed to divest plants, terminals, and a quarry to settle Federal Trade Commission charges that their proposed USD25 billion merger creating the world's largest cement manufacturer would likely harm competition in the US.
According to a complaint filed by the FTC, the merger of Holcim, a Swiss company, and Paris-based Lafarge, would have harmed competition in 12 markets for portland cement, an essential ingredient in making concrete, and in two additional markets for slag cement, a specialty cement used for making more durable concrete structures.
As per the terms of the proposed consent agreement, Lafarge has agreed to divest to Continental Cement Company its Davenport cement plant and quarry in Buffalo, Iowa; and its cement terminals and other distribution assets in Minneapolis - St. Paul, Minnesota; La Crosse, Wisconsin; Memphis, Tennessee; and Convent and New Orleans, Louisiana.
Holcim will divest to Eagle Materials Inc. its Skyway slag cement plant in Chicago; to Essroc Cement Corporation its slag cement plant located in Camden, New Jersey and its terminal near Boston; to Buzzi Unicem USA its cement terminals in Grandville and Elmira, Michigan and Rock Island, Illinois.
Holcim will divest to a buyer or buyers to be approved by the FTC its Trident, Montana cement plant and two related terminals in Alberta, Canada; and its Mississauga cement plant in Ontario, Canada and related cement terminals in: Duluth, Minnesota; Detroit and Dundee, Michigan; Cleveland, Ohio; and Buffalo, New York.
Copyright RTT News/dpa-AFX
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