Holcim, Lafarge agree new terms for merger deal

FRANKFURT/PARIS (Reuters) - Holcim Ltd and Lafarge SA have agreed to new terms over their planned multi-billion-euro merger, which would create the world's biggest cement firm, including agreeing to a new share-swap ratio for the deal.

They agreed to a ratio of 9 Holcim shares for 10 Lafarge shares, Holcim said on Friday.

It said the appointment of a new chief executive for the combined group would be communicated in due course, at the latest upon filing of the public offer to the Lafarge shareholders.

Holcim also said that certain key shareholders of both companies had confirmed their support for the revised merger terms, without naming those shareholders.

 

The merger hit the rocks earlier this weeks with Switzerland-based Holcim seeking to renegotiate terms for the merger, including who should be in top management positions.

The original deal reached almost a year ago called for an 1-for-1 share exchange ratio and Lafarge Chief Executive Bruno Lafont was to be the CEO of the new company with seven board members to come from each side.

Under the new terms, Lafont is to be co-chairman with Holcim chairman Wolfgang Reitzle while Lafarge's board is to propose a CEO that has to be accepted by the Swiss group's board.

Lafont said Lafarge's board had unanimously approved the revised merger terms.

(Reporting by Maria Sheahan, Leigh Thomas and Katharina Bart; Editing by Ingrid Melander)