Cement giants Lafarge and Holcim in merger talks

French cement giant Lafarge and its Swiss peer Holcim yesterday said that they are in merger talks. If the deal materialises, it would create a company with a market cap of $55 billion and sales of $43 billion.

''Lafarge and Holcim believe that, given the strong complementarity of their portfolios 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,'' Paris-based Lafarge said in a release.

''The discussions are based on principles consistent with a merger of equals which build on the strengths and identities of the two companies,'' the release added.

The French company went on to add that no agreement has yet been reached and there was no guarantee that these discussions will lead to concrete transaction.