Competition Bureau Seeks Unprecedented Divestitures for Lafarge-Blue Circle Acquisition

OTTAWA, June 15, 2001 — The Competition Bureau today filed an application with the Competition Tribunal for a Draft Consent Order calling for unprecedented divestitures in order to implement its agreement with Lafarge S.A. ("Lafarge") announced on April 11, 2001.

The divestitures are part of a package to resolve competition concerns arising from the proposed acquisition of Blue Circle Industries plc ("Blue Circle") by Lafarge. Canadian subsidiaries of the merging parties are the two largest cement and related construction materials suppliers in Ontario.

With assets in Canada and the U.S. valued over $1billion, the application before the CompetitionTribunal provides for the largest divestiture package in the history of Canadian competition law. The application alsorequires that Lafarge divest the Blue Circle assets quickly, while continuing to maintain these assets as competitive and viable pending their sale.

The proposed resolutionfollows a Competition Bureau investigation which relied on extensive cooperation between the Bureau and the United States Federal Trade Commission ("FTC").

"The unprecedented degree of cooperation and coordination between the Competition Bureau and the FTC has led to a landmark settlement which will protect the interests of consumers and industry participants in both Canada and the United States," said Konrad von Finckenstein, the Commissioner of Competition.

On April 11, 2001 the Bureau announced that it would not challenge the proposed acquisition after Lafarge agreed to sell the vast majority of Canadian Blue Circle assets and businesses as well as related cement distribution assets in the United States. The Bureau concluded that without the divestitures, the deal would have likely led to a substantial prevention or lessening of competition in certain cement, ready-mix concrete, aggregates as well as in asphalt and related paving markets in Ontario.

For more information, please contact:

Michael Sullivan
Mergers Branch
Competition Bureau
819-953-4297