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Swiss cement giant Holcim to spin off North American business

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Agence France Presse

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="A file photo dated 26 February 2014 showing the logo of the Swiss Holcim enterprise pictured during the media conference in Zurich, Switzerland. EPA/ENNIO LEANZA" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2024/overseas/01/29/holcim.jpg"/><figcaption>A file photo dated 26 February 2014 showing the logo of the Swiss Holcim enterprise pictured during the media conference in Zurich, Switzerland. EPA/ENNIO LEANZA</figcaption></figure></div>GENEVA, Switzerland - Swiss construction giant Holcim announced Sunday it aimed to fully spin off its North America business, which it said could be valued at $30 billion in a US public listing.The company also announced that its board had picked Miljan Gutovic, who currently heads Holcim&#x27;s European operations, to replace Jan Jenisch as chief executive officer from May 1.Holcim, one of the world&#x27;s largest cement makers, said in a statement that it intends to list its North American business in the United States during the first half of 2025 &quot;with full capital market separation&quot;.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/09/26/23/holcim-philippines-to-delist-from-ph-stock-exchange">Holcim Philippines to delist from PH Stock Exchange</a></li></ul>It said it would communicate about the final structure later this year, but that the move would create a leading pure-lay North American building solutions company.Jensich, who has headed Holcim since 2017, will remain on as chairman of the group and will lead the US listing process, the company said.In Sunday&#x27;s statement, he explained the spinoff decision, pointing to Holcim&#x27;s &quot;superior earnings profile with industry-leading margins and a strong balance sheet&quot;.Holcim is currently the largest cement maker in North America, where it counts 850 sites.Jensich told reporters that once spun off, the new company could be valued at around $30 billion (28 billion euro), adding that Holcim was not planning to hold onto a stake.&quot;We don&#x27;t intend that there will be any cross-participation after... this has been completed,&quot; he said.&quot;It&#x27;s going to be two independent companies,&quot; he said, adding that the idea was to &quot;make two independent champions&quot;.<div>- &#x27;Rock star business&#x27; -</div>Jenisch highlighted that North America had been Holcim&#x27;s best developing business in recent years.&quot;It&#x27;s a rock star business,&quot; he said, pointing out that it had been growing sales by more than 20 percent each year for the past four years.&quot;This is simply too successful to be run as a subsidiary.&quot;Holcim said the new US business would aim to rake in more than $20 billion by 2030.That compares to around $11 billion currently, according to Jenisch.The plan is also for the spun-off business to generate an operating profit of more than $5 billion and industry-leading margins within the next six years, the company said.Following the spinoff, the rest of Holcim&#x27;s global business would meanwhile remain listed on the main SMI index on the Swiss stock exchange as a &quot;leader in innovative and sustainable building solutions&quot;, the company said.Jenisch voiced confidence that shareholders would give the project their blessing.&quot;The transaction is intended to unlock value by creating two distinct and compelling investment profiles with attractive shareholder returns,&quot; Holcim said.<div>nl/giv</div><div>© Agence France-Presse</div>

Swiss construction giant Holcim announced Sunday it aimed to fully spin off its North America business, which it said could be valued at $30 billion in a US public listing.