Lafarge has signed an agreement with the Canadian Competition Bureau concerning the Group's stake in Blue Circle Industries plc.
The Canadian authorities have granted Lafarge approximately two years in which to reduce its stake to less than 10%. The Group will have full voting rights in respect of its Blue Circle shares up to 10%. With respect to the remaining shares, pending divestiture, certain limitations will be placed on Lafarge's voting rights by way of a trustee who will vote the shares in the best proprietary interests of Lafarge.
Lafarge has also agreed to terminate the put and call option provisions contained in its contractual arrangements with Dresdner Bank concerning the Blue Circle shares held by the latter.
Lafarge intends to keep a close watch to ensure that Blue Circle honours the financial and earning promises made to its shareholders at the time of Lafarge's takeover bid.
Bertrand Collomb, Chairman and CEO of Lafarge, stated: "This agreement with the Canadian Competition Bureau provides for the protection of the value of Lafarge's stake in Blue Circle, while permitting Lafarge to keep its options open for the future."