Swiss cement firm Holcim announced yesterday that it had turned down a proposal from major shareholder Eurocement for its founder Filaret Galchev to join the board of the new combined company it is creating with rival Lafarge.
The companies announced the names of the candidates for the board of the new group earlier this week, in a list comprising of seven nominees from Holcim and seven from French building materials group Lafarge.
On Wednesday, Eurocement notified Holcim that, as its second largest shareholder, it was nominating Galchev to join the board, expected the company to “honour their proposal”.
However, yesterday Holcim said: “This proposal came too late to be considered by the board of directors of Holcim for inclusion into the agenda of the extraordinary general meeting.”
The leadership of the new group has already proved contentious, and doubts were raised about the €41bn (£30bn) merger at one point this year when Holcim said it would not support the appointment of Lafarge boss Bruno Lafont to lead the combined firm.
Shareholders will vote on the new board at a meeting on 8 May.