Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: FTC seeks public comments on cement manufacturer asset divesture, (Jun 11, 2015)
Organizations Mentioned:C R H International, Inc. | CRH International | Continental Cement Company, LLC | Holcim Ltd. | Lafarge S.A.
By Jody Coultas, J.D.
The FTC is currently accepting public comments on an application by Holcim LTD. and Lafarge S.A. to sell various Holcim assets to an affiliate of CRH International.
According to the FTC complaint, the merger of Holcim, a Swiss company, and Lafarge of France, would have harmed competition in 12 markets for portland cement, an essential ingredient in making concrete, and in two additional markets for slag cement, a specialty cement used for making more durable concrete structures. In each of these markets, Holcim and Lafarge are either the only two significant suppliers, or two of, at most, four significant suppliers.
The companies agreed to divest plants, terminals, and a quarry to settle the FTC’s charges. Under the terms of the proposed consent agreement, Lafarge has agreed to divest to Continental Cement Company its Davenport cement plant and quarry in Buffalo, Iowa; and its cement terminals and other distribution assets in Minneapolis - St. Paul, Minnesota; La Crosse, Wisconsin; Memphis, Tennessee; and Convent and New Orleans, Louisiana.
Holcim will divest (1) to Eagle Materials Inc., its Skyway slag cement plant in Chicago; (2) to Essroc Cement Corporation, its slag cement plant located in Camden, New Jersey, and its terminal near Boston; (3) to Buzzi Unicem USA, its cement terminals in Grandville and Elmira, Michigan and Rock Island, Illinois; and (4) to a buyer or buyers to be approved by the FTC, its Trident, Montana cement plant and two related terminals in Alberta, Canada; and its Mississauga cement plant in Ontario, Canada and related cement terminals in: Duluth, Minnesota; Detroit and Dundee, Michigan; Cleveland, Ohio; and Buffalo, New York.
The Canadian Competition Bureau approved CRH as a buyer of Holcim’s operations and assets in Canada to further a consent agreement between Holcim and the Bureau, which required Holcim to sell all of its Canadian operations and associated assets as part of its proposed acquisition of Lafarge S.A. of France. Pursuant to the agreement, CRH will also buy one cement plant and five cement terminals from Holcim in the United States.
Public comments may be submitted until July 10, 2015. Written comments should be sent to: FTC Office of the Secretary, 600 Pennsylvania Ave., N.W., Washington, DC 20580. Comments can also be filed electronically.
Companies: Holcim Ltd.; Lafarge S.A.; CRH International
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