Paris, France (BBN) – The world's two largest cement makers are in advanced talks to merge into a company that would have a stock market value of more than $30bn euros (£25bn).
A deal between France's Lafarge and the Swiss Holcim group would be the industry's biggest ever merger.
However, the proposed tie-up could face a lengthy competition inquiry from regulators as the new company would be dominant in Europe and the US.
Shares in Lafarge and Holcim jumped 9.0 percent and 7.0 percent respectively on the news, the BBC reported.
In statements on Friday, the companies emphasised that no agreement had yet been reached, and that there was no guarantee of a deal.
But they pointed to a "strong complementarity" and "cultural proximity" between their operations.
A merger would allow the companies to cut costs, trim debt and reduce the sector's global overcapacity.
BBN/SSR/AD-5Apr14-10:53 am (BST)
