Holcim plans to spin off its cement subsidiary in the United States in search of generating more value and boosting the growth of this business unit.
The company considers that its share of the North American market is too large to handle this as a subsidiary, which is why they are moving towards a more centralized management.
Holcim has been the largest cement company in the world for around a decade, which started with the merger of the cement company Lafarge and previous Holcim, however, this union has had its ups and downs due to internal conflicts between senior leaders.
The cement company will complete the “full capital market separation” of its business in the United States with the final structure of the spin-off at the end of 2024 and the US listing is expected to be completed mid-2025 after this is approved by the shareholders.
According to a board member, the North American business could be valued at approximately $30 billion, despite representing only 40% of sales last year.
Many European companies have sought to list on the American stock market in search of higher valuations, greater market liquidity and the analyst coverage they can provide.
The North American business is estimated to have generated about $11 billion in net sales last year, but the company said it aimed to increase that figure to more than $20 billion by the end of the decade.
The company has around 850 facilities and 16,000 employees in the United States and Canada, and has strengthened the business in North America with other acquisitions, such as the purchase of Firestone Building Products from the Japanese Bridgestone Corporation for $3.4 billion in 2021.
In general, construction materials companies have lost their popularity among investors due to the current trend of greater environmental awareness. Holcim has sought to shift its strategy towards greener construction and has placed great emphasis on its commitment to supporting decarbonizing the construction industry.