Lafarge climbs saved after marriage with Holcim – Boursier.com

(Boursier.com) – Whew! The merger of Lafarge and Holcim will not know the fate of that provided in Publicis and Omnicom , which failed in the final stretch because of a quarrel executives. The two cement reached an agreement modifying the parity of the operation to reflect a better valuation of the Swiss group and removing Bruno Lafont, Lafarge’s boss, his position as general manager of the future entity. A number of key shareholders confirmed their support for the revised terms of the merger, even if their identity was not revealed, which also means that all the key shareholders do not approve the transaction.

The market welcomes the news with enthusiasm this morning, which is in our share price up 3.4% to 64.44 euros, in expanded volumes.

New Parity and indented Bruno Lafont

The merger will therefore not really “between equals” since 9 Holcim shares will be 10 Lafarge, against strict parity in the initial project. A development that analysts considered logical given the different trajectories of the two groups at present. At the announcement of the proposed merger it a year ago, some professionals had already emphasized too lenient treatment enjoyed in their eyes, Lafarge shareholders. Things are rebalanced, which is not also disputed the French group.

The main stumbling block concerned however governance. Swiss faction did not want to Bruno Lafont as CEO of the merged entity, and they have been successful. Lafarge’s strong man will have a position of non-executive co-chairman alongside his counterpart Wolfgang Reitzle, the sole non-executive chairman in the original scheme. As the Director General of LafargeHolcim … it remains mysterious! At this point, both groups indicated that only will be chosen by Lafarge and Holcim approved by, and that will take office at the closing of the transaction. His name will be known later than the filing of the tender offer for Lafarge shareholders.

A bonus share dividends

The resolutions required to implementation of the merger will be presented at a general meeting of shareholders of Holcim around 7 May 2015. Lafarge and Holcim agreed that, subject to shareholder approval, the new group will announce after the finalization of the operation a dividend payable in shares of 1 new share for 20 LafargeHolcim shares. The parties suggest crossing a milestone , which allows you to go ahead and continue working intensely on the preparation of the finalization of the transaction and a successful post-merger integration.

Calming

The tone is appeasement among the leaders, even if it is difficult to know the by diplomacy in this exercise. Wolfgang Reitzle ensures that work close Bruno Lafont to carry out the operation. I want to emphasize the exceptional contribution of Bruno until today and I am extremely confident in our ability to work together in the new board is he even added, if investors would doubt. Lafont, meanwhile, was content to support the project to create a new business model with an exceptional ability cash flow generation and lower capital intensity . The two companies anticipate closing the transaction in July, 2015.

  Anthony Bondain – © 2015 Boursier.com