CRH interested in Lafarge-Holcim assets
26 January 2015
CRH has confirmed it is in discussions with Lafarge and Holcim to acquire businesses. The two companies previously announced a major divestment programme as part of gaining regulatory approval for their proposed merger.
In confirming that CRH was in discussions with the two companies about buying those businesses, the Ireland-based materials producer added in a statement, “While there can be no certainty that these discussions will result in a transaction, if an acquisition was to proceed, it is likely that it would be funded through a combination of existing cash balances, debt and an equity placing. At this stage there can be no certainty that these discussions will lead to any transaction.”
CRH is the first major player in the materials industry to declare its interest. Heidelberg Cement had previously ruled itself out of any bid for Holcim-Lafarge assets.
Holcim and Lafarge announced their intention to merge last April. The deal will create by far the largest aggregates and cement producer in the world. This was followed by an announcement in July about the assets that would be put up for sale to meet regulatory concerns about the merger.
The two companies have since confirmed the composition of the executive management team of the merged entity. Current Lafarge chairman & CEO, Bruno Lafont will be CEO of the new company.