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Paris - The world's two largest cement makers, France's Lafarge and Switzerland's Holcim, have agreed the terms of a merger that will create a company with a stock market value of around $55bn, a source says.
Lafarge and Holcim, whose boards approved the proposal on Saturday, are due to announce it on Monday and have already begun to address possible competition concerns that would arise from the tie-up, said the source.
Lafarge declined to comment. Holcim was not immediately available for comment.
The two companies had already issued statements on Friday announcing they were in advanced talks to merge, a deal which would help them slash costs, trim debt and better cope with the soaring energy prices and weaker demand that have hurt the sector since the 2008 economic crisis.
Merger
The terms of the transaction, reported by French newspaper Le Figaro and confirmed by the source, will see Holcim launch a public takeover for Lafarge payable in shares. If successful, the combined entity will be based in Switzerland but will have operational headquarters in Switzerland and France.
Any deal is likely to draw scrutiny from European competition watchdogs, as a Lafarge-Holcim entity will have a dominant position in both Europe and the United States.
The companies are already working to address "a number of" possible antitrust concerns, the source said, without giving more details.
Regulators would probably require the companies to shed some cement plants and distribution facilities before approving any merger.
