Lafarge, Holcim Finally in a Deal; Sabadell to Buy TSB for

Nigel Thomas
20 Mar, 2015
New York City

Lafarge and Holcim agreed to a new share-swap for the $44 billion merger. Sabadell agreed to acquire TSB Banking for

[R]4:00 PM Frankfurt – Lafarge and Holcim agreed to a new share-swap for the $44 billion merger. Sabadell agreed to acquire TSB Banking for £1.7 billion in cash. Zodiac Aerospace revenues climbed 16% to €2.3 billion.[/R]

European markets traded higher after talks between leaders of the euro zone seemed to be nearing a pact with prime minister of Greece for the release of aid.

Markets took a positive view of the tone but Greece is still falling short of the implementation of financial and economic reforms demanded by the euro zone leaders and the IMF and the ECB.

In London trading, FTSE 100 index gained 0.5% or 36.68 to 6,999 and in Frankfurt the DAX index climbed 1.2% or 144.77 to 12,044.17.

In Paris, CAC 40 index jumped 1% or 50.16 to 5,087.34.

Allianz SE increased 1.4% to €160.60 after the Germany-based financial services provider signed an agreement with Goldman Sachs to protect most of its stake in China Pacific Insurance Group Co Ltd.

Allianz agreed to a future sale of 147.7 million Hong Kong-traded shares of CPIC at HK$36.77 each to Goldman for $700 million.

Bachem Holding AG soared 4.9% to 50.90 Swiss francs after the Switzerland-based pharmaceutical ingredients maker said revenues in the year ending in December soared 7.8% to 183.9 million francs from 170.7 million francs a year ago period.

Net profit in the year surged 23.1% from a year ago to 29.1 million francs compared to 23.6 million francs and diluted earnings per share jumped to a 2.15 francs from 1.75 francs.

Lafarge SA jumped 2.9% to €64.16 after the France based building materials and cement producer agreed on a new share-swap ratio for the $44 billion merger deal with Switzerland-based rival Holcim Ltd for its $44 billion.

Under the revised arrangement, 9 Holcim shares will be exchanged for 10 Lafarge shares and Lafarge CEO Bruno Lafont will become co-chairman of the combined group and will appoint a new CEO.

Banco de Sabadell SA climbed 3.2% to €2.28 after the Spain-based financial services provider agreed to acquire TSB Banking Group Plc for 340 pence per share that valued cash offer at £1.7 billion or $2.5 billion.

Lloyds Banking Group agreed to sell its stake of 9.99% in TSB for £850 million and use net proceeds for general corporate purposes.

Zodiac Aerospace SA tumbled 8.1% to €30.46 after the France-based aeronautical-equipment maker said revenues in the first-half climbed 16.2% to €2.32 billion from €2 billion a year ago period.

The company added revenues from AeroSafety segment in the period jumped 10.1% to €296 million and revenues from Aircraft System segment soared 11.9% to €697 million.

The company said first-half current operating income will be affected by higher costs in its Seats business but estimated the income to match previous year period.