Holcim, Lafarge Dispute Over Merger Terms Threatens Deal

Holcim Ltd. and Lafarge SA’s plan to create the world’s biggest cement company is at risk of unraveling as both sides disagree over the leadership and financial terms, placing the future of the $40 billion merger in jeopardy.

Switzerland’s Holcim said it won’t pursue the planned combination in its present form and wants Lafarge to accept a stake of less than the initially agreed 47 percent in the combined business. Holcim is also pushing for another executive than Lafarge Chief Executive Officer Bruno Lafont to lead the new entity, according to people familiar with the matter. Lafarge, in turn, said it’s willing to compromise on the deal’s exchange ratio, though not on leadership.