(Reuters) - Eurocement Holding AG, Holcim Ltd's (>> Holcim Ltd) second-largest shareholder, said it supports the Swiss cement maker's planned merger with France's Lafarge SA (>> LAFARGE).

"Having analysed all advantages and disadvantages of a possible creation of the biggest global construction materials player we think that the prospective of the development of the combined company is very positive, so we will support the merger," Eurocement said in a statement.

Eurocement, which has a 10.8 percent stake in Holcim, said it intends to keep actively participating in the work of the merged company.

The backing from Eurocement is a boost to Zurich-based Holcim as it seeks to win the support of two-thirds of investors at a shareholder meeting on May 8 in order to approve a fundraising to pay for the merger.

Eurocement-owner Filaret Galchev had earlier expressed concerns about the terms of the Holcim-Lafarge deal, but on April 16 Eurocement said it would nominate Galchev for a position on the board of the combined group - a sign that Eurocement was softening its resistance to the merger.

(Reporting by Supriya Kurane in Bengaluru; editing by Andrew Hay)

Stocks treated in this article : LAFARGE, Holcim Ltd