Cement merger gets back on track

Holcim Ltd and Lafarge SA reached an agreement to adjust merger terms in an effort to salvage their bid to form the world’s biggest cement maker, leaving open the contentious point of who will be chief executive.

The two companies revised the exchange ratio so that Switzerland-based Holcim will give 0.90 of a share in return for one share of Paris-based Lafarge, instead of the original one-to-one ratio, they said yesterday.

In talks extending into the early hours, negotiators tackled Holcim’s loss of faith in Lafarge chief executive Bruno Lafont and his ability to deliver post-merger savings after his company’s profit and sales lagged behind. Lafont, who had been the designated CEO of the enlarged group, clashed with Holcim managers over issues including leadership style and strategy.