Lafarge Mauritius now forms part of global cement brand LafargeHolcim
Lafarge Mauritius finally gets the green signal to be part of LafargeHolcim, the global cement brand that has arisen from the international merger of France’s Lafarge and Switzerland’s Holcim, but Holcim Mauritius will have to sell its operations to a third party in order to maintain competitive balance.
Lafarge Mauritius is now a member of LafargeHolcim, a global cement brand arising from the international merger of France’s Lafarge and Switzerland’s Holcim, which has resulted in the creation of a powerful group with presence in 90 countries. However, Holcim Mauritius will have to sell its operations to a third party, in order to maintain competitive balance.
In Mauritius, the cement market is liberalized with annual consumption of 650,000 tons, in which Lafarge Mauritius has 60% market share.
To give an idea of the shareholding structure of the company, Taylor Smith has 29% stake, with State Investment Corporation and Joonas also being prominent shareholders, among others.
Mauritius is one of the rare countries where Lafarge and Holcim did not merge because the resultant entity would have been in a monopolistic position, controlling 100% of the market and putting consumer interests at risk.
It has been decided then that, while Lafarge Mauritius will join the global entity LafargeHolcim, but, in order to protect the interests of consumers, Holcim Mauritius will have to sell its operations to a third party.
On the international front, Holcim and Lafarge have completed their merger to create LafargeHolcim, a new leader in the construction industry.
All conditions for the completion of the merger have been fulfilled following the successful completion of the public exchange offer and the issuance of new Holcim shares to Lafarge shareholders.
Holcim’s shareholders had previously approved the merger-related resolutions at an Extraordinary General Meeting on May 8, 2015. With the completion of the merger, the mandate of the new Board of Directors and of the new Executive Committee with Eric Olsen as CEO has become effective.
LafargeHolcim also unveils its new logo and corporate identity today. The new identity has been designed to demonstrate that Holcim and Lafarge have united to form one company, expressing the leadership and strength of the new Group.
Wolfgang Reitzle, Co-Chairman (statutory Chairman) of the Board of Directors of LafargeHolcim, says: “Today’s closing is a historic event – not only for our two founding companies but also for the industry as a whole. LafargeHolcim has a unique business portfolio, it is the industry benchmark in R&D and offers its customers the widest range of innovative and value-adding products, services and solutions – from smallholders to large enterprises and most complex projects.”
Bruno Lafont, Co-Chairman of the Board of Directors of LafargeHolcim, adds: “This new company is built on the rich history and culture of Lafarge and Holcim and its teams. The merger has not only resulted in a larger and more global company but brings about a unique set of complementary capabilities to capitalize on. Under the leadership of Eric Olsen, the new Group will foster a new operating model and create more value for all our stakeholders.”
The new LafargeHolcim shares will be traded on the SIX Swiss Exchange as well as the Euronext in Paris as of July 14.
As announced, LafargeHolcim will re-open the public exchange offer to give the remaining Lafarge shareholders the opportunity to also tender their shares. The new offer period will start on July 15, 2015 for duration of ten trading days until July 28th.
The Group received all relevant anti-trust approvals within the expected timeframe following a proactive dialogue with the respective authorities. In this context, operations in Europe, the US, Canada, Brazil, India, the Philippines, and Mauritius are being divested.
With a commitment to drive sustainable solutions for better building and infrastructure and to contribute to a higher quality of life, the Group is best positioned to meet the challenges of increasing urbanisation.