Switzerland’s Holcim plans to separate its US cement business

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Holcim, the Swiss cement company, is in the process of separating its North American business, according to individuals familiar with the situation. The company is expected to announce its plans in the coming days, with the potential for the North American business to be eventually listed in the US.Holcim, based in Zug, was formed as a result of the 2015 merger between France’s Lafarge and Switzerland’s Holcim, creating the world’s largest cement company. Holcim currently has a market capitalization of approximately 37.2 billion CHF ($43.1 billion).In its first-half results last year, Holcim stated that North America was projected to contribute around $12 billion in net sales in 2023, accounting for approximately 40 percent of the group’s total. The company also highlighted its leading position as a cement supplier in North America and its strong presence in the commercial flat roofing and concrete sector. According to the company’s website, it operates around 350 locations in 43 states in the US and employs 7,000 people.Holcim has continued to be active in dealmaking since its own merger nearly a decade ago. In 2022, the company agreed to sell its Indian businesses to Adani Group for $10.5 billion in cash. The year prior, the group acquired Firestone Building Products from Japan’s Bridgestone Corporation for $3.4 billion, aiming to bolster its position in the US market by entering the lucrative flat roof segment.European companies have sought US listings due to the potential for higher valuations and improved market liquidity and analyst coverage. Last year, CRH, the world’s largest building materials group, shifted its primary listing from London to New York.Holcim did not immediately respond to requests for comment. The WSJ first reported on Holcim’s plans.

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