Lafarge's CEO seen as brake on merger

In less than a year, Lafarge SA Chief Executive Officer Bruno Lafont has gone from celebrated co-architect of the world's biggest cement merger to one of the deal's main obstacles.

Holcim Ltd, which in April agreed to a $40 billion merger with Lafarge, is pushing for an executive other than Lafont to lead the new entity, according to people familiar with the matter. The Swiss company is questioning his ability to reach saving targets because Holcim has outperformed Lafarge on everything from sales to profit since the deal was announced, they said. Lafont and Holcim managers have also clashed over issues including strategy, they said.

The dispute over leadership by the 58-year-old Frenchman shows how a clash of personalities can become the biggest liability in mergers. The gum-chewing, cigar smoking Lafont and the soft-spoken Holcim CEO Bernard Fontana, who was due to remain in his post until the merger completion, have disagreed on key issues from the start, one of the people said.