Holcim says not to form joint organisation with Cemex in Spain
ZURICH Oct 30 (Reuters) - Holcim said on Thursday it no longer planned to form a joint organisation with rival Cemex in Spain because of changes in the strategic landscape of the cement industry following its proposed merger with Lafarge.
Lafarge and Holcim unveiled plans in April to create the world's biggest cement group with $44 billion in yearly sales, a deal designed from the start to be accompanied by billions of dollars worth of asset disposals in order to secure regulatory approval worldwide.
The Mexican firm will instead take over two cement operations in Spain and pay Holcim 45 million euros (56.69 million US dollar) in cash, the Swiss cement maker said.
As a result of the changes, Holcim said it expected sustainable additional operating earnings before interest, taxes, depreciation and amortization (EBITDA) of at least 10 million euros on a yearly basis after the deal closes.
The previously announced transactions with Cemex in Germany and Czech Republic remain unchanged, the Swiss firm said. ($1=0.7938 euro) (Reporting by Alice Baghdjian; Editing by Clarence Fernandez)
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