Holcim to list US operations in Zurich

Holcim will list its North American division on the Zurich Stock Exchange (SIX Swiss Stock Exchange), in addition to its planned New York listing after the spin-off of the operations in 2025, the Swiss building materials giant said on Friday, quoted by Reuters.

In January, Holcim announced that it would spin off its North American operations by 2025, through a New York listing that could value the business at more than $30 billion. The rest of Holcim's global businesses - in Europe, Latin America, Africa and Asia - will remain listed on the Zurich Stock Exchange and focus on building solutions.

The spin-off of the North American operations will be put to a vote at Holcim's annual general meeting on May 14, 2025, and is expected to be completed by the end of the first half of 2025, Holcim said. The decision will help the company capitalize on the region's boom in infrastructure and construction.

A listing in Switzerland could help some European funds keep their investments in Holcim, but others could be forced to sell their stakes because regulations prevent them from holding shares in the U.S.

A listing on the Zurich Stock Exchange would help keep Holcim's investors in their home country, as Swiss investors hold almost 20% of the company's shares, according to Reuters data.

The North American division had sales of about $11 billion in 2023, and in recent years sales have grown by an average of 20% per year. By 2030, the division is expected to reach annual sales of $20 billion, mainly through organic growth and small acquisitions.

Holcim is North America's largest cement producer, with 16,000 employees across 850 sites.

Chief Financial Officer Steffen Kindler said in October that the separation of the North American business was going "extremely well."

On December 1, Holcim announced it would exit its Nigerian business by selling its nearly 84 percent stake in Lafarge Africa. The buyer is China's Huaxin Cement, and the deal is valued at $1 billion. The deal aligns with Holcim's strategy to reduce its portfolio and focus on high-growth regions. The transaction is expected to close in 2025, subject to regulatory approval. Holcim did not elaborate on the reason for the sale.

Last November, Holcim announced that it had signed agreements to sell its businesses in Uganda and Tanzania.