Huaxin Expands Global Presence With $807 Million Acquisition of Holcim Philippines

Huaxin Expands Global Presence With $807 Million Acquisition of Holcim Philippines

Aug 2 (Reuters) – Swiss building materials supplier Holcim Group said on Sunday it plans to sell its Philippines business to ​China’s Huaxin Building Materials  in a deal that could raise at ‌least $807 million.

Holcim will sell 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 $290 million.

This ​would lead to an overall valuation of $807 million, although the figure could ​rise “based on incremental value creation during this period,” Holcim said.

Money ⁠raised from the sale will be used to fund large acquisitions and ​also further investment in Holcim’s existing business.

The Swiss company has been focusing more ​on Europe, Latin America, North Africa and Australia as it reshapes its business after spinning off its North American operations into a separate company last year.

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Acquisitions have been identified as a ​key part of Holcim’s growth strategy, with the company planning to make ​around 15 deals in 2026.

Holcim last year said it had 3 billion Swiss francs to ‌4 ⁠billion Swiss francs ($3.72 billion to $4.95 billion) to spend on acquisitions up to 2030, and could raise up to 6 billion Swiss francs more from divestments and extra borrowing for large deals and share buybacks.

Holcim CEO Miljan Gutovic on Friday ​said the company ​had a “very healthy ⁠pipeline” of acquisition projects in Latin America, Europe and also parts of Asia, Middle East and Africa, and was ​also considering large deals.

“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,” he 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,” Gutovic added.

($1 = 0.8074 Swiss francs)