Lafarge, Holcim merger expected to impact Canada

May 29, 2014

lafarge holcimCement producers Lafarge and Holcim plan to merge next year, and Financial Post predicts that the deal could have a major impact on Canada’s aggregates industry.

The report notes that the companies own about half of the cement market in Canada, which will likely result in several asset divestments in the coming year.

Lafarge has already begun selling some assets in other countries. The company announced this week that it is selling its cement operations in Ecuador.

Financial Post expects a number of buyers would probably express interest in investing in the assets in Canada, including New York-based private equity firm Blackstone Group and other producers such as Mexico-based Cemex and German-headquartered HeidlebergCement AG.

If sold, the plants would likely continue to be operated with existing staff, which employ a combined total of about 9,000 people in the country.

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