BY UNICAPITAL SECURITIES
Switzerland’s Holcim called a halt on Monday to its merger with Lafarge, pressing the French company to renegotiate the deal terms and putting their plan to create the world’s biggest cement maker at risk.
The deal was presented as a marriage of equals in April 2014, although the terms meant Holcim shareholders would end up with 53% of the combined company.
Since then, diverging performances both in terms of company results and share prices, exacerbated by a surge in the Swiss franc against the euro, have strengthened Holcim’s position.
The Swiss company’s largest shareholder has been pressing for a revision of the agreement for some time and now the board has stated the deal will not happen without a renegotiation, both of the price and management positions.