Lafarge plans $450m US asset disposal to smooth Holcim union

Lafarge, the French cement producer, has detailed $450m worth of US asset disposals in Iowa and along the Mississippi river in a bid to win permission for a planned merger with fellow Swiss manufacturer Holcim.

The sales of the cement plant and seven terminals, designed to ensure permission for the deal by the Federal Trade Commission, is one of the final steps before the €41bn agreement is set to close in July.

Holcim is also offering to sell three terminals in Michigan and Illinois, grinding stations in Illinois and New Jersey, and a terminal in Massachusetts, the Swiss group said on Friday.

"These proposed divestments have been negotiated with the staff of the Federal Trade Commission, and remain subject to review and approval by the commission," Lafarge said in a statement.

Managers are attempting to steer the merger through its final stages without any more drama, after the deal almost collapsed last month in a conflict over money and personalities.

Tensions had developed between Bruno Lafont, Lafarge chief executive, and the management of Holcim, leading to a campaign to make sure Mr Lafont did not become head of the combined group.

Holcim shareholders were also pushing for a renegotiation of the financial terms after it outperformed its French rival and saw the relative value of its shares enhanced by the strengthening of the Swiss franc.

Eventually, Mr Lafont agreed to become co-chairman of the combined company instead, alongside Wolfgang Reitzle, Holcim chairman. Lafarge's Eric Olsen was chosen to head LafargeHolcim instead.

There were also financial terms agreed in Holcim's favour. The terms will exchange every nine Holcim shares for 10 Lafarge ones, against the one-to-one ratio originally agreed last April.

This week, one of the big dissenting voices in the deal, Eurocement - the second-largest shareholder in Holcim - said it was nominating its owner Filaret Galchev for a position on the board and supporting the deal.

Mr Galchev's name was not on a list of candidates for the post-merger board released on Tuesday, but Holcim's chairman said last month the firm was open to giving the Russian businessman a seat.

Two-thirds of Holcim shareholders need to approve the deal at a meeting on May 8. The deal requires two-thirds of Lafarge shareholders to then tender their shares in exchange for Holcim ones. The deal is set to close in July.

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