Lafarge merging with fellow cement manufacturer Holcim
Reprints
Lafarge S.A. is in the midst of a $60 billion “merger of equals” with Jona, Switzerland-based Holcim Ltd. that is expected to be completed during the first half of 2015.
The combined company, which will be known as LafargeHolcim, will operate in 90 countries across both developed and high-growth markets.
LafargeHolcim will become the largest cement manufacturer in the world, with manufacturing capacity of 427 million tons a year — exceeding the 227 million tons annual manufacturing capacity of the current global market leader, China-based Anhui Conch Cement Co. Ltd.
The combined company, which will be listed both in Paris and Zurich, will be domiciled in Switzerland and have combined sales of about €32 billion ($33.93 billion).
Annual cost savings of about €1.4 billion ($1.48 billion)a year are expected as a result of the tie-up.
Because the merger has not yet been completed, Lafarge's group risk and insurance manager, Laurent Barbagli, is unable to give many details of the insurance and risk management program of the combined company.
“We are working with our counterparties on mutual discovery,” he said, and currently that work is going well.
“It is exciting because you learn a lot about the management of the divestment,” for example, he said. “We are building a model for the future.”
At the same time, however, it is “business as usual,” Mr. Barbagli said.
Read Next
-
Laurent Barbagli gets crucial support from Lafarge's management team
The ability to run a centralized insurance program for a company that is expanding its global reach has been one of Laurent Barbagli's key achievements.
Related Stories
-
Laurent Barbagli gets crucial support from Lafarge's management team
-
Laurent Barbagli created risk management community at Lafarge
-
Laurent Barbagli uses audits to promote risk awareness at Lafarge
-
-
Laurent Barbagli introduces groupwide risk mitigation standards for Lafarge
-
Laurent Barbagli consolidates captive insurance program to optimize risk retention
