Fed. Competition Bureau greenlights Holcim/ Lafarge merger - with conditions
The Canadian Press (CP) is reporting that the Federal Competition Bureau (FBC) has given the green light, with conditions, to the takeover of Lafarge S.A. by Holcim Ltd. The massive, multi-country deal will merge the world's two largest cement companies.
The Federal Competition Bureau said Monday it had reached an agreement that will see Holcim sell all of its Canadian operations and all associated assets. Under the FCB new agreement, Holcim will also sell one cement plant and five cement terminals in the United States.
"The sale of the U.S. cement plant is required to allow the Canadian assets to run effectively as a stand-alone business once they are no longer associated with other Holcim assets," the bureau said in a public statement. The FBC mandated agreement requires Holcim to sell the assets to a single purchaser or in two packages to two purchasers.
The first package includes two cement terminals in Edmonton and Lethbridge, Alta., along with a cement plant in Three Forks, Mont., which the bureau said was essential to Holcim's operations in Alberta.
The second package includes Holcim's cement plants in Joliette, Que., and Mississauga, Ont., as well as many cement terminals, ready-mix concrete plants and other aggregates and construction facilities. It also includes five cement terminals in the northeastern United States.
Holcim currently employs about 2,600 people in Canada and manufactures cement, aggregates and ready-mix concrete and provides construction services according CP, Lafarge Canada is the largest producer of cement and concrete-related building materials in Canada.
Source: Canadian Press report