04 April 2014
Holcim and Lafarge discuss possible combination 04 April 2014
Worldwide: Holcim has confirmed that Lafarge and Holcim are in advanced discussions regarding a possible combination.
Holcim and Lafarge have stated that, given the strong complementarity of their portfolio and the cultural proximity between the two companies, there is rationale in considering a potential merger that could deliver significant benefits to customers, employees and shareholders. Holcim said that their discussions have been based on principles consistent with a merger of equals, which would build on the strengths and identities of the two companies.
No agreement has yet been reached and no assurance can be given that these discussions will lead to a definitive agreement. Holcim stated that it will inform the public of any material developments in this respect.
BEE deal increases staff ownership of PPC to 12% 04 April 2014
South Africa: PPC's new black economic empowerment (BEE) deal has shifted the beneficiary base from broad-based trusts to the company's employees themselves, using the 'proximity principle.' The new transaction will increase the company's staff ownership to 12%.
This follows a move in 2013 to close the income inequality gap through an executive pay freeze that bumped up the salaries of lower-paid workers. CEO Ketso Gordhan said that the company has spent time on the ground with its employees, who have shown an appreciation for being listened to. Whether PPC will follow this up with further executive pay cuts and freezes remains to be seen, though Gordhan has said that the company intends to reduce the wage differential further.
Asia Cement unit plans to buy Sichuan cement plant 04 April 2014
China: Asia Cement said that its subsidiary interest Sichuan Yadong Cement has entered into a framework agreement with the existing shareholders of Sichuan Lanfeng Cement to acquire their entire equity interest in Sichuan Lanfeng and thus indirectly the entire equity interest in Sichuan Lanfeng's wholly-owned subsidiary, Sichuan Lanfeng Building Materials.
The target companies principally engage in the manufacture and sale of cement, concrete and related products in Sichuan Province. They operate a cement plant located in Pengzhou City, Sichuan which comprises two new dry process clinker production lines with a total cement production capacity of 5Mt/yr.
The parties are expected to sign the formal sale and purchase agreement before 16 April 2014.