CADE approves with restrictions Holcim/Lafarge merger
The Tribunal of the Administrative Council for Economic Defense – CADE approved on 10 December 2014 the merger between Holcim Ltd. and Lafarge S/A (Merger file no. 08700.007621/2014-42). The approval was conditioned to the signature of a Merger Control Agreement (ACC for its acronym in Portuguese).
The Reporting Commissioner, Gilvandro Araújo, followed the General Superintendence’s opinion that the transaction, which scope is global, would result in concentration in the cement and concrete markets in some Brazilian locations.
To solve the competition concerns, the companies, at the moment of the notification, suggested to the agency the signature of the ACC, in which they would commit to divest a package of assets that include productive cement and concrete units in the states of Rio de Janeiro and Minas Gerais.
By the agreement, the companies must divest the plants in the cities of Arcos, Matozinhos and Santa Luzia, in the state of Minas Gerais, and in Cantagalo, in the state of Rio de Janeiro. Also according to the agreement, the buyer for the divested assets must be approved by CADE and the transaction can only be concluded after the trade of their sale.
“The proposal presented by the companies addresses the concerns pointed by the Council in the cement, concrete, gravel and aggregates. The decision does not conflict with what was already decided by CADE in these markets”, state Gilvandro Araújo.