The world’s two largest cement makers, France’s Lafarge SA and Holcim of Switzerland, are in talks about a merger.
The deal would create a global concern worth around $55 bn.
Reuters reports that the boards of Lafarge and Holcim approved the proposal on Saturday and have already begun to address possible competition concerns that would arise.
The terms of the transaction, reported by French newspaper Le Figaro will see Holcim launch a public takeover for Lafarge payable in shares. If successful, the combined firm will be based in Switzerland but will have operational headquarters in Switzerland and France.
Lafarge Chief Executive Officer Bruno Lafont will become CEO of the combined entity while the chairman will be Swiss.
Three years ago, Lafarge’s UK operations merged with Tarmac, to create a 50/50 joint venture, Lafarge Tarmac, following a deal between Lafarge SA and Tarmac’s parent Anglo American.