BUDAPEST: The on-off merger of cement giants Holcim and Lafarge looks set to pass the acid test of Holcim’s extraordinary general meeting on Friday. Key shareholders now appear to be on board despite earlier scepticism about the merits of the deal.
The plan to create the undisputed number one global cement manufacturer has proved far from straightforward since the CHF40 billion ($43 billion) merger was first mooted a year ago. Gaining shareholder and regulatory acceptance now looks on course to meet the end of July deadline for merger completion, but things looked less positive earlier in the year.
At least two thirds of Holcim’s shareholders will have to approve the plan at the company’s EGM in Zurich on Friday. Thomas Schmidheiny, Eurocement and Harris Associates – who together represent more than a third of shares – have been convinced by Holcim executives that the deal will generate €1.4 billion (CHF1.46 billion) in synergy savings, boost innovation and increase the firm’s global reach.