Exclusive: Holcim Agrees to Historic $807M Sale of Philippines Unit to China’s Huaxin
Holcim Group has announced plans to sell its Philippines business to China's Huaxin Building Materials in a deal that could raise at least $807 million. The sale, which is expected to be completed in the first half of 2027, marks Holcim's biggest divestment since it sold its Nigeria business to Huaxin Cement in a $1 billion deal in December 2024.
Historic Sale of Philippines Unit to Huaxin
The deal involves Holcim selling an initial 68% stake for $527 million, with the remainder to be sold over the next three to five years for a minimum price of $280 million. This would lead to an overall valuation of $807 million, although the figure could rise based on incremental value creation during this period, according to Holcim.
The sale of the Philippines business is part of Holcim's strategy to reshape its business after spinning off its North American operations into a separate company last year. The Swiss company has been focusing more on Europe, Latin America, North Africa, and Australia, and has identified acquisitions as a key part of its growth strategy.
Funding for Future Acquisitions
The money raised from the sale of the Philippines business will be used to fund large acquisitions and further investment in Holcim's existing business. Holcim has a "very healthy pipeline" of acquisition projects in Latin America, Europe, and parts of Asia, Middle East, and Africa, according to CEO Miljan Gutovic.
"We are constantly screening our landscape, from walling and flooring solution companies all the way to roofing, and we believe there are some very attractive markets," Gutovic told analysts after the company's second-quarter results. "I'm confident that we will have a strong momentum on the M&A front in the second half of this year," he added.
Acquisitions and Future Growth
Acquisitions have been a key part of Holcim's growth strategy, with the company planning to make around 15 deals in 2026. Holcim has a significant budget for acquisitions, with 3 billion Swiss francs to 4 billion Swiss francs ($3.72 billion to $4.95 billion) to spend on deals up to 2030, and could raise up to 6 billion Swiss francs more from divestments and extra borrowing for large deals and share buybacks.
The company is considering large deals and has a strong pipeline of acquisition projects in various regions. With the sale of the Philippines business, Holcim is expected to have a significant amount of capital to spend on future acquisitions, which could drive its growth in the coming years.
The sale of the Philippines business to Huaxin Building Materials marks a significant milestone in Holcim's strategy to reshape its business and focus on growth in key regions. The deal is expected to be completed in the first half of 2027, and will provide Holcim with the capital it needs to fund future acquisitions and drive growth in the coming years.
Source: Joy Online
