DealBook: Holcim and Lafarge List Potential Asset Sales to Ease Merger

LONDON — Holcim and Lafarge, the world's two largest cement and construction materials companies, outlined on Monday which assets they planned to sell in hopes of easing regulatory approval for their merger.

Lafarge, which is based in Paris, and Holcim, which is based near Zurich, are leading suppliers of construction materials like sand, stone and gravel. The companies, which announced in April that they planned to merge and that they hoped to close the deal in the first half of 2015, had combined revenue of $43 million last year.

Antitrust lawyers and other observers have said it could take years to combine the two companies, and regulators will probably require a series of asset sales, given the size of the two companies.

The companies said the potential sales — primarily in Europe — were identified by a divestment committee set up after the merger agreement.

The companies plan to sell assets in Austria, France, Germany, Hungary, Romania, Serbia and Britain as well as in Canada, the Philippines and Brazil.

The combined company expects to operate in about 90 countries after the merger.

"LafargeHolcim group will have a significant and balanced industrial base in Europe — around 20 percent of its revenues — within its overall global footprint, enabling it to take advantage of the European economic recovery," the companies said in a joint statement.

The asset sales would affect an equal number of employees from both companies, and any potential sales are subject to additional discussions with antitrust regulators, the companies said.

Holcim and Lafarge said they had already been contacted by a series of potential buyers and expected to start talks soon.

"Both companies will continue to consider whether divestments would be necessary where there might be overlaps or depending on regulatory requirements," the companies said.

Separately, the British mining company Anglo American said it planned to sell its 50 percent stake in Lafarge Tarmac, a joint venture with Lafarge in Britain, to Lafarge for a minimum of 885 million pounds, or about $1.5 billion.

The deal will make it easier for Lafarge to divest itself of the bulk of the joint venture in Britain.

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