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October 23, 2021

Deal of the decade, finalized •Lafarge Romania’s plants sold to Ireland’s CRH

The Holcim and Lafarge cement producers have announced the completion of their merger and the launch of the new LafargeHolcim company, the world’s biggest producer of construction materials.

All conditions for the merger have been met after the successful conclusion of the public trading offer and the issuance of new Holcim shares for Lafarge shareholders. Holcim shareholders approved the merger resolutions during the extraordinary general assembly meeting on May 8. The term of the new Board of Directors and of the new Executive Committee, with Eric Olsen as CEO, became effective with the merger.

The new company’s shares will be traded on SIX Swiss Exchange, as well as on Euronext Paris starting on July 14.

The two producers announced their merger intention in April 2014. Since then the group has received all relevant anti-trust approvals. In this context, a series of assets were sold in Europe, United States of America, Canada, Brazil, India, Philippines and Mauritius. These transactions are expected to be completed in the following months. Ireland’s CRH is the buyer.

Lafarge’s Romanian production units played an important role in the decision taken by Ireland’s CRH Group, the latter taking the commitment to take over all assets that stood in the way of the merger between Holcim and Lafarge.

CRH announced it will pay EUR 6.5 bln for the global assets sold by Lafarge and Holcim, of which over EUR 500 M represents the sum paid for the production units in Romania, according to estimates. In Romania, CRH will buy all eight companies in which Lafarge owns shares, companies that have approximately 1,000 employees and manage the two cement plants in Medgidia and Hoghiz, the mill in Targu-Jiu, 16 concrete stations and 16 quarries and ballast pits. The transaction includes the Multibat and Romcim brands. Lafarge Romania has a production capacity of 4.9 million tons of cement and 3.5 million tons of ballast per year. The company’s total investment in local production units totals EUR 700 M, of which EUR 81 M was invested in the last 5 years.


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