Holcim Ltd. and Lafarge SA announced further details on their proposal for comprehensive divestments in Brazil in order to gain antitrust approval for their planned merger, LafargeHolcim. The joint Divestment Committee agreed to propose to the Brazilian competition authority, Conselho Administrativo de Defesa Econômica (CADE), assets that include three integrated cement plants and two grinding stations as well as one ready-mix plant in southeastern Brazil.
“These proposed divestments have been presented to CADE in the context of pre-filing negotiations and will now be subject to review and further discussion until a final decision is reached with the authority,” the companies said in a joint statement.
Holcim and Lafarge need to shed assets generating about $6.71 billion in annual revenue to help persuade competition watchdogs to back the proposed deal, which was unveiled in April and would create a combined group with $44 billion in yearly sales.
The divestment process will be completed subject to the closing of the merger between Holcim and Lafarge. As previously announced, the closing of the planned merger is expected in H1 2015, aiming to create the most balanced and diversified portfolio in the industry, operating in 90 countries and creating superior value for its stakeholders.