[Original] Lafarge, Holcim Hold Talks with EU to Accelerate Merger Process

     Since April 7, 2014, when the two major cement groups, Lafarge and Holcim, announced the merger plan, the cement industry has set off a huge wave. Recently, Lafarge and Holcim held talks with the European Union aimed at speeding up the merger process. In order to win regulatory approval, Lafarge and Holcim confirmed that they would sell assets, reportedly worth about 5 billion euros, to address antitrust concerns.

   The merger of the two groups might have gone more smoothly in the early European markets. However, under the current severe situation of anti-monopoly, Lafarge and Holcim may face up to four months of anti-monopoly investigation by relevant regulatory authorities. Of course, the two groups have long been working for the smooth implementation of the merger plan. As early as July 2014, the two groups announced plans to split some of their assets. The European cement plant market for divestment will include Austria, France, Germany and Romania. The two groups will move to areas where the development of the cement industry is weak. The European market will be defined as a key sales market. With the review of the first phase of the merger plan, the market transactions of Lafarge and Holcim will be more transparent.