Calyon plays a leading role in a historic acquisition by Lafarge

On December 10, 2007, Lafarge announced its acquisition of Orascom Cement, the leading cement producer in the Middle East and Mediterranean region. Orascom Cement is a wholly owned subsidiary of Egypt's Orascom Construction Industries, which is controlled by Nassef Sawiris.

Calyon proposed this acquisition to Lafarge and acted as the transaction advisor.

This transaction is the largest in Lafarge's history. In becoming the leading cement producer in the Middle East and Mediterranean region, Lafarge significantly strengthens its position in rapidly growing emerging markets and accelerates its growth strategy.

The EUR10.2 billion acquisition (including EUR 8.8 billion in equity) will be accompanied by a reinvestment of EUR 2.8 billion by Sawiris, who will subscribe 22.5 million new shares in Lafarge, representing an 11.4% equity interest, and will gain a seat on the Board of Directors.

The market enthusiastically welcomed the acquisition, with Lafarge shares surging by 18% over a two-day period following the announcement.

Calyon initiated the transaction with Lafarge, then ensured its execution alongside BNPP and Morgan Stanley. Calyon also acted as the arranger of acquisition financing, which was contributed in equal parts by Calyon, BNPP and Morgan Stanley. Calyon is the Credit Agent for the transaction.

The transaction is expected to close in late March and is subject to the usual regulatory approvals from market and competition authorities, as well as the shareholders' meetings of both the buyer and seller.