French building materials giant Lafarge reached an agreement with Canadian competition authorities in early June to reduce its stake in UK-based Blue Circle Industries to less than 10% over the next two years.

Lafarge and its advisory bank Dresdner Kleinwort Benson own a combined 44% of Blue Circle capital after Lafarge's failed takeover bid of Blue Circle. But under Canadian competition laws, Lafarge cannot directly or indirectly hold more than 10% of Blue Circle, since both companies hold major shares in Canada.

Lafarge said it has renounced its agreement with Dresdner regarding Blue Circle shares.