Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: EC announces conditional approval of Holcim’s acquisition of Xella, (Jun 15, 2026)
Organizations Mentioned:Holcim Ltd. | Xella international S.A.
By Rebecca Mayo, J.D.
To eliminate competition concerns, Holcim must divest its AAC blocks plant in Adjud, Romania.
Holcim Ltd.’s proposed acquisition of Xella international S.A. has been approved by the European Commission, with one caveat, according to a press release from the European Commission. Holcim has agreed to divest one of its plants in Romania to address concerns that the acquisition would significantly reduce competition for certain building materials in that market. The Commission’s approval is conditional upon full compliance with this commitment.
Xella is a European provider of masonry materials, insulation products, mortars and lime. Xella is also a pioneer in digitally supported construction processes with proprietary platforms blue.sprint and Building Companion. Holcim is a global supplier of cement aggregates, ready-mix concrete, building materials, insulation products and mortars.
In October, 2025, Holcim and Lone Star Funds announced that an agreement had been signed to sell Xella Group to Holcim. Lone Star announced that the transaction was expected to close H2 2026 with a transaction value of approximately €1.85 billion According to the announcement from Holcim, the transaction value represented a pro forma 2026 EBITDA multiple of 8.9x, or 6.9x after run-rate synergies of EUR 60 million realized in year three, and earnings per share (EPS) and free cash flow accretive in year one and return on invested capital (ROIC) accretive in year three.
The Commission, which was notified in April 2026, initially had concerns that the transaction would significantly reduce competition in the market for the supply of autoclaved aerated concrete (AAC) blocks, which are a specific type of building material designated to provide energy-efficient and sustainable solutions for construction projects. The Commission’s investigation found that Holcim and Xella were leading suppliers of AAC blocks in Romania. However, Holcim offered to divest Holcim’s AAC blocks plant in Adjud (Romania) to address these concerns. By removing the horizontal overlap between the parties’ AAC blocks businesses in Romania, the Commission found that the transaction would no longer raise competition concerns. In a separate buyer approval procedure, the Commission will assess the suitability of buyers proposed by Holcim.
Companies: Holcim Ltd.; Xella international S.A.
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