Lafarge, Holcim might have to sell Romanian plant amid merger

By bne IntelliNews April 8, 2014

Major global cement producers Lafarge and Holcim might have to sell one of their Romanian plants if the local antitrust body decides so amid the global merger of the two companies, Ziarul Financiar daily commented.

The cement market is problematic, the head of the antitrust body, Bogdan Chiritoiu, commented for Wall Street online publication. The local antitrust body will cooperate with its European peers, he added.

No production capacity will be closed down – but rather sold, if necessary – officials of the two companies quoted by Ziarul Financiar daily stated. Lafarge and Holcim operate two production capacities each in Romania, after having invested some EUR 700mn each.

There are three cement producers in Romania that share roughly equal market slices and were already involved in price-setting allegations. Apart from Lafarge and Holcim – with sales of roughly EUR 200mn each, Heidelberg Cement operates the Carpatcement Holding with sales of over EUR 200mn. The antitrust body set fines in the amount of over EUR 72mn for all the three local producers back in 2005.

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