Genesis gives expert advice on major cement merger

Genesis was retained to provide expert economic analysis in an international merger between cement producers Holcim and Lafarge.

The objective of the assignment was to assess the Competition Commission’s requirement that Holcim divest its minority shareholding in a competing South African cement manufacturer as a condition for the approval of the merger.

The project team’s analysis dealt with the theory of harm underlying the commission’s finding that the merger was likely to result in anti-competitive effects.

It also examined the issue of the potential for coordinated actions within the context of the minority shareholding.

The challenge to the merger was ultimately abandoned as decisions in other jurisdictions enforced the divestiture remedy.