Holcim in tailspin, Lafarge takeover called off – for now

Sep, 23 2008

(Prague, Czech Republic)  --  Cement wars: Industry insiders that last week alerted the possibility of Holcim launching a hostile takeover of French competitor Lafarge, point to the recent stock plunge by Holcim (18% in a single day) as a reason for the Swiss construction materials giant to take a breath and to study the industry landscape.

Ironically, while Holcim had Lafarge in its cross hairs, Holcim itself has attracted a predator.  In a statement released on Monday, Holcim said it was informed by Eurocement on September 19 that the Russian firm held 17,187,000 or 6.52 per cent in registered shares and rights. Holcim said it welcomed the move.

"Every shareholder is welcome at Holcim, so long as there is an eye for the long-term industrial interest of our firm," a Holcim spokesperson said.

Eurocement called its strategy friendly and said it was in the interest of the company.

Eurocement, which is among the world's top eight cement producers and unites 16 full-cycle cement factories in Russia, Ukraine and the Central Asian republic of Uzbekistan with an annual capacity of 38 million metric tons of cement, said it did not intend to make a public offer on acquiring the entire stock of Holcim and nominate its representatives to the Swiss company's board of directors.
"The decision on an investment in Holcim stock was made on the basis of a knowledge of the sector and the results of work by the Holcim board of directors and management," Eurocement said in a statement, adding that it was interested in the Swiss company's engineering, technical and technological potential to implement its previously announced investment program.
Eurocement intends to boost cement production.