“As part of their proposed merger, Lafarge and Holcim announce they entered exclusive negotiations further to a binding commitment made by CRH regarding the sale of several assets. The assets include operations mainly in Europe, Canada, Brazil and the Philippines,” reads a Lafarge press release.
In Romania CRH will take over Lafarge’s assets, meaning two cement factories in Medgidia and Hoghiz, a grinding station, 15 cement stations and four mobile cement stations.
The Irish company is already present locally with two building supplies companies – Elpreco and Ferrobeton.
Holcim and Lafarge announced last April that they will merge their global operations. In Romania the merger has to be appropved by the Competition Council.
The Romanian cement market, which is estimated at around EUR 600-700 million (7 million tonnes), is already a concentrated one. Each of the local subsidiaries of the two companies covers about one third of the market. Carpatcement, part of German HeidelbergCement AG, the next biggest competitor of the future LafargeHolcim, has a similar market share of about 30 percent.
The merger of the local subsidiaries of Lafarge and Holcim would further hamper competition on a market which is already closely monitored because of this issue, said the head of Romania’s Competition Council, Bogdan Chiritoiu, last year. (source: business-review.eu)
