Bloomberg: Lafarge, Holcim Deal Likely To Be Announced As Early As April 7

(RTTNews) - French cement giant Lafarge SA (LFGEF.PK, LFRGY.PK) and Swiss peer Holcim Ltd. (HCMLY.PK) are in advanced merger talks to create a company with $40 billion in sales, Bloomberg reported. An all-share merger is likely to be announced as early as April 7, the report added, quoting people familiar with the matter.

The combined entity is expected to be able to deal with production overcapacities and higher energy costs in a better manner.

The companies are said to be exploring a merger of equals, building on their strengths and identities. They intend to retain dual Swiss and French stock-market listings and headquarters.

The merger will help the cement makers to cut costs by combining certain operations amid lower demand in the wake of global recession.

In order to improve returns from plants that require a high amount of energy, Holcim agreed in August to swap assets in Germany and the Czech Republic with Monterrey, Mexico-based Cemex SAB (CX).

Holcim climbed 6.9 percent on Friday to close at 80.20 Swiss francs. Lafarge added 8.9 percent to settle at 64.09 euros.