Holcim to cut fewer jobs than Lafarge in merger

OREANDA-NEWS. Switzerland-based cement company Holcim would eliminate 120 jobs in its central office if it successfully merges with France-based Lafarge.

Holcim announced the reorganization today, following yesterday's word from Lafarge that it would eliminate 380 positions, including 166 of the employees from its headquarters country. The newly formed company, LafargeHolcim, would be based in Switzerland.

The combination, originally conceived as a "merger of equals," evolved into something more of a takeover earlier this year as the Swiss company's value increased because of its higher local currency. Some of its shareholders rebelled against the planned one-to-one share exchange. The companies restructured the merger to provide Lafarge shareholders with nine newly issued Holcim shares for every 10 of Lafarge's and selected a new chief executive rather than current Lafarge head Bruno Lafont.

It is too soon to say which positions are being eliminated, as first both companies must negotiate with labour representatives to get them to agree to the reorganisation and employee options such as early retirement. If the merger goes forward, the new company's fuel purchasing department will become one of the world's largest petroleum coke buyers.

Two-thirds of Lafarge's investors must accept the deal for the merger to go forward and close as expected in July. The company would implement the new structure in early 2016.