Holcim and Lafarge have announced their intention to merge to create the most advanced group in the building materials industry.

The merger of equals was unanimously approved by their respective Boards of Directors and fully supported by the core shareholders of both companies. The proposed merger is conditional upon, among other things, execution of definitive documentation, approval of the shareholders of Holcim and obtaining required regulatory and other customary authorisations.

The merger will enable optimised capital allocation across the expanded footprint to drive improved return on capital employed, and strong cash-flow generation. Combined operations will include production sites located in 90 countries across all continents with the most balanced and diversified portfolio in the industry. This will deliver highly attractive growth prospects across both high growth and developed markets.

“This proposed merger is a once in a lifetime opportunity to deliver substantially better value to customers with more innovation, a wider range of products and solutions and more sustainability and enhanced returns to shareholders,” says Holcim chairperson Rolf Soiron. He says the new global company, LafargeHolcim, will be uniquely positioned to take advantage of growth in developed markets and the world’s fastest growing economies by supplying the materials that will enable the construction industry to meet the challenges of the future.

According to Lafarge CEO Bruno Lafont, combining Holcim’s experienced teams, complementary geographies and innovative expertise with Lafarge’s, the two propose to set up the most advanced group in the construction industry. “I am confident that this merger of equals provides a unique opportunity to rapidly create the most advanced platform in our industry with outstanding synergies,” he concludes.