LafargeHolcim would be formed by “a merger of equals” and be the biggest player globally in the cement, concrete and aggregates markets.

The deal will attract the attention of the competition authorities but LafargeHolcim will embark on “a strategic optimization of the portfolio through a pro-active divestment process, in anticipation of regulatory requirements.”

Rolf Soiron, current Chairman of Holcim, said: “This proposed merger is a once in a lifetime opportunity to deliver substantially better value to customers with more innovation, a wider range of products and solutions and more sustainability and enhanced returns to shareholders.”

Bruno Lafont, Chairman and CEO of Lafarge, added: “I am very proud to propose today this new chapter in Lafarge’s long industrial history which is the fruit of the commitment of our people over the years.

“By combining Holcim’s experienced teams, complementary geographies and innovative expertise with ours, we propose to set up the most advanced group in the construction industry, for the benefit of our clients, our employees and our shareholders.”