According to a statement of the two companies, Lafarge and Holcim set up a committee which drew up list of proposed asset disposals, representing most of the assets that the two companies aim to divest.
Thus, the commission decided that the companies should sell Lafarge’s Mannersdorf cement plant in Austria, Holcim’s assets in metropolitan France, except for its Altkirch cement plant and aggregates and readymix sites in the Haut-Rhin market; Lafarge’s assets on Reunion island, except for its shareholding in Ciments de Bourbon.
In Romania and Germany, the companies should sell Lafarge’s assets, while In Hungary and Serbia, Holcim assets should be sold.
In the UK, Lafarge will have to sell Lafarge Tarmac assets with the possible exception of one cement plant.
The two companies also plan to sell assets in Canada, Mauritius, the Philippines and Brazil.
Lafarge and Holcim recently announced they would merge and create the largest global cement maker with an annual turnover estimated at $40 billion. To get antitrust clearance, the two companies will have to sell several assets, including in Romania.
“The future LafargeHolcim group will have a significant and balanced industrial base in Europe – around 20% of its revenues – within its overall global footprint, enabling it to take advantage of the European economic recovery, “ the release reads.
The divestment process will be completed subject to the closing of the merger between Holcim and Lafarge.
Lafarge is present in Romania on the cement segment, which accounts for the biggest share of its sales, and on the concrete and aggregate market. Its main competitors locally are Germany’s HeidelbergCement and Switzerland’s Holcim.
Lafarge Romania currently owns approximately 40 production sites, with the most important plants on the cement segment being located in Medgidia, Hoghiz, Targu Jiu.
On the concrete and aggregate segment, Lafarge owns Lafarge Agregate Betoane SA and Lafarge Agregate SRL.
Contacted by Mediafax, the group’s representatives stated they could not provide details on the value of assets proposed for sale for each county.
Lafarge posted a 37.4% growth in cement sales in Romania in the first quarter, mainly due to favorable weather conditions that allowed an early start on construction projects.
Holcim’s cement and clinker sales in Romania rose 5.1% in the first quarter this year and economic conditions are still difficult in eastern European markets. Cement and clinker prices increased 6.6% in lei, the cement maker said in its report.
On the aggregate market, Holcim sales dropped 16.3% in Romania but prices rose 39.1%.
Holcim Romania employs approximately 950 people.