Holcim had said earlier this week that it was no longer prepared to go ahead under the previously agreed terms. Both parties have now agreed on a new exchange ratio of nine Holcim shares for 10 Lafarge shares. A new chief executive officer for the combined group, to be proposed by the Lafarge Board and accepted by the Holcim Board, will be appointed as from the close of the transaction.
The appointment is expected to be communicated by the time the public offer is filed to Lafarge shareholders.
The Holcim shareholder resolutions required to implement the merger are expected to be presented to a Holcim shareholders meeting in May.
Wolfgang Reitzle, chairman of Holcim said: “I am very pleased that we are now able to proceed with our project to create a truly outstanding global leader in building materials. Bruno Lafont and I will work closely together to ensure that the value creation potential of this merger will be realised for the benefits of all shareholders."
Bruno Lafont, chairman and CEO of Lafarge, said: “We are crafting a new leader in the building materials industry focusing on customers and innovation. The new company will gather best-in-class teams of our sector with the strength of our two combined companies. It creates a new business model with outstanding cash flow generation capabilities and reduced capital intensity,"
Certain key shareholders of both companies have confirmed their support for the revised merger terms. The parties expect the transaction to close in July 2015.
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