A deal to create the world’s biggest cement maker has started to crumble.
Switzerland’s concrete giant Holcim has pulled out of its proposed 42 billion euro ($45 billion) tie-up with France’s Lafarge, which the pair agreed to in April last year.
Holcim wants to renegotiate the terms including the one-to-one share exchange ratio and governance issues.
While Lafarge said it was willing to reconsider the share ratio, it’s refusing to budge on other parts of the agreement.
Holcim argues its shares have been outperforming Lafarge’s since the deal was announced last year.
The Swiss franc has gained 13% against the euro since January, making the Swiss company more valuable.
Between them, the Swiss and French firms have about 30% of the market or more in the United States, Canada, Britain, France and many other smaller countries, according to UBS research.
After the announcement, Lafarge shares fell more than 4.4% while Holcim’s stock edged down 0.4%.
