Oliver Q
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Holcim board rejects terms of proposed $44.27 billion Lafarge merger


Let’s not make a deal after all

The board of directors at Swiss-based Holcim Ltd. has rejected the terms of a proposed €42 billion ($44.27 billion) tie-up with rival cement giant Lafarge SA, Lafarge said Monday.

France-based Lafarge LG, -5.20% said it received a letter on Sunday from the chairman of Holcim’s HOLN, -1.13% board saying the company doesn’t want to pursue their previous agreement that was approved last July and is “challenging the financial terms and governance structure of the proposed merger of equals.”

Lafarge said its board of directors “remains committed” to the merger and is “willing to explore the possibility of a revision of the parity.”

The original deal, which would create the world’s largest cement maker, was dubbed “a merger of equals” and would involve a capital increase on Holcim’s part to meet a one-to-one share exchange. That share-exchange ratio is now rejected, though Lafarge has said it is willing to renegotiate.

An extended version of this story can be found at WSJ.com