The European Commission found the proposed merger between Lafarge and Holcim to be in line with the European Union’s merger regulation. According to the commission, the decision is conditional upon the divestment of Lafarge businesses in Germany, Romania and the United Kingdom, and Holcim operations in the Czech Republic, France, Hungary, Slovakia and Spain.
The commission says it had concerns that the transaction, as originally structured, would have had detrimental effects on competition in a number of European markets. But the commitments Lafarge and Holcim made addressed those concerns.
The commission adds that the merged company would have faced insufficient competitive pressure from the remaining competitors in a number of markets. This would have brought a risk of price rises, the commission adds. So Lafarge and Holcim committed to divesting most of their operations where their activities overlap.
Still, Lafarge and Holcim will not be allowed to officially close their deal until the European Commission approves the buyers of the assets the companies made available.
