Plans to create the world’s biggest cement firm were back in the mix as the two sides met for crunch talks.
Switzerland’s Holcim and France’s Lafarge have been negotiating for almost a year over the deal to create a $44 billion (£29.7 billion) giant.
Under the original terms of the merger, Lafarge and Holcim shareholders would get one share in the other company for each one they held.
But Holcim has outperformed Lafarge in the last year and the Swiss firm’s directors now say “the combination agreement can no longer be pursued in its present form”.
Holcim now wants to give away just 0.875 of its shares for every Lafarge share although Lafarge is said to be pushing for a weighting of 0.93.
The Swiss firm also wants to put up a sole chief executive rather than have joint bosses. Lafarge shares dropped 4% in Paris today.
The two firms are negotiating “in good faith” but if the deal collapses it could jeopardise a fees bonanza for Goldman Sachs, which advised Holcim, as well as Lafarge’s advisers Rothschild and Zaoui & Co.
Ireland’s CRH is paying €6.5 billion (£4.6 billion) for a slew of operations - including the UK business Tarmac - which the pair are being forced to sell to ease competition concerns.
It said it “noted” the discussions and is due to hold a meeting to approve the deal on Thursday.
