The planned merger between Holcim and Lafarge to create the world’s biggest cement company has stalled.
Swiss group Holcim has rejected terms for the £30bn merger in its present form, blaming performance disparities between the two groups since the deal was approved last July, Construction Enquirer reports.
The planned deal was first billed as a merger of equals, with a one to one share exchange ratio giving both firms an equal stake in the cement titan.
But Holcim is now seeking a greater share of the combined entity as its shares have outperformed those of the French Lafarge Group.
The rethink will have an impact on CRH’s separate deal to buy around £4.9bn worth of assets to be disposed in the mega-merger, including Lafarge’s Tarmac business in the UK.
Bruno Lafont, chief executive of Lafarge, had been picked to lead the merged group. But Holcim is also looking for a change in the management of the new company.