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Holcim, Lafarge secure EU approval for cement merger

Published 15/12/2014, 18:27
© Reuters. A logo is seen at a Lafarge concrete production plant in Pantin
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By Foo Yun Chee

BRUSSELS (Reuters) - European Union antitrust regulators on Monday approved the proposed merger of France's Lafarge (PA:LAFP) and Swiss peer Holcim (VX:HOLN) to create the world's biggest cement maker after they promised to sell a swathe of overlapping assets.

The European Commission said the asset sales would allay concerns that the deal may reduce competition and lead to price increases.

Holcim and Lafarge said the package, with the exception of a minor change in France, was about the same as that announced in October, which was worth about 12 percent of their combined revenues.

"The decision is conditional upon the divestment of Lafarge businesses in Germany, Romania and the UK and of Holcim operations in France, Hungary, Slovakia, Spain and the Czech Republic," the EU watchdog said in a statement.

Buyers will have to be approved by the Commission. The companies will also sell businesses in Canada, the Philippines, Brazil and Mauritius.

Reuters reported on Dec. 3 that the deal would receive the EU green light.

© Reuters. A logo is seen at a Lafarge concrete production plant in Pantin

The companies said they were on track to close the deal in the first half of 2015 following the EU approval, the latest following the go-ahead from regulators in Russia, Turkey and South Africa.

(Additional reporting by Caroline Copley in Zurich)

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