Holcim-Lafarge deal needs lengthy review, says EU antitrust chief

It will be a long haul for Swiss cement producer Holcim and its French peer Lafarge as they merge the world's two biggest cement makers to create an even bigger group, as the merger will require approval in 15 countries.

Holcim and Lafarge, the two biggest listed companies in the cement sector already, with operations in 90 countries, will face antitrust scrutiny in 15 jurisdictions and will have to sell some 5 billion euros of assets to secure regulatory approvals.

The size of the merger requires a lengthy examination before it can be approved, European Competition Commissioner Joaquin Almunia said.

He was talking to reporters on the sidelines of a conference organized by the Hellenic Competition Authority in Athens.

Holcim and Lafarge say the tie-up will help the combined company slash costs, trim debt and better cope with soaring energy prices, tougher competition and weaker demand.

If approved, the combined group would be worth just under $60 billion.

"Last week the parties informed us of their intention but with very general information before the operation was known by the media. Now we will receive more detailed information because this should of course be analyzed at our level," Almunia said.

"Given the size of the two companies, given that they are the two main players in the European market, yes, it's clearly a phase 2 analysis," Almunia said, referring to a review that could take several months.

The European Commission takes 25 working days even for a preliminary review. The EU competition watchdog normally opens a phase 2 investigation of up to four months if it has serious concerns over a deal.

Besides, the merged Lafarge-Holcim, with $44 billion of annual sales, would need regulatory approval in 15 countries.