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Swiss cement giant Holcim is close to a deal to separate its North American operations, according to informed sources.
The company may announce its plans in the coming days, the sources said, adding that the North American business could eventually list in the United States.
Headquartered in Zug, Holcim is the result of a 2015 merger between France’s Lafarge and Switzerland’s Holcim that created the world’s largest cement company. Holcim trades with a market capitalization of approximately 37.2 billion Swiss francs ($43.1 billion).
In its first-half results last year, Holcim said North America was expected to contribute about $12 billion in net sales in 2023, or about 40% of the group’s total.
It added that it is North America’s largest cement supplier and a major supplier of commercial flat roofing and concrete. The company has about 350 locations in 43 U.S. states and employs 7,000 people, according to its website.
Since its merger nearly ten years ago, Holcim has remained active in deal making.
In 2022, Holcim agreed to sell its Indian operations to Adani Group for $10.5 billion in cash.
The previous year, the group had agreed to buy Firestone Building Products from Japan’s Bridgestone Corporation for $3.4 billion to strengthen its position in the United States. The deal was intended to help Holcim enter the lucrative flat roof market.
European companies have looked to US listings for the higher valuations, greater market liquidity and analyst coverage they can offer.
CRH, the world’s largest building materials group, moved its main listing from London to New York last year.
Holcim did not respond to immediate requests for comment. The WSJ first reported Holcim’s plans.