The proposed merger of Holcim and Lafarge in India is well on track, though the future structure will be decided upon getting approval of the competition watchdog CCI, Swiss cement major Holcim said today.
"In India both companies are well on track in preparing the merger of Holcim and Lafarge, with future structure for this subcontinent to be announced in due course upon clearance by Competition Commission of India," Holcim said in a release.
Building material major Holcim has controlling stakes in both ACC Ltd and Ambuja Cements with a cumulative cement-making capacity of over 58 million tonnes per annum (mtpa).
French cement maker Lafarge has four manufacturing plants at Chhattisgarh, West Bengal, Rajasthan and Jharkhand in India with a cumulative capacity of over 11 mtpa now.
Meanwhile, fair trade watchdog Competition Commission of India has put the merger deal between Holcim and Lafarge under public scrutiny after prima facie finding it could hurt the competition in Indian cement market.
The two parent firms, Holcim and Lafarge, had in April this year announced a merger proposal between them, aimed at creating the world's largest building material company. The two moved a step closer to the completion of the proposal today by announcing its future executive committee.
Lafarge and Holcim have already received clearance from the European Commission for their proposed merger.
However, till the process is completed, current executive committees of Holcim and Lafarge would remain in charge. Both groups would also continue to operate entirely separately as competitors until the merger is completed, Holcim said.
