Residents of Pari Island in Indonesia are taking Swiss cement giant Holcim to court over its failure to reduce carbon emissions, which they claim contributes to rising sea levels threatening their home. This marks the first climate litigation against a corporation in Switzerland, with the plaintiffs demanding significant emission cuts and compensation. Holcim plans to appeal the decision, emphasizing its commitment to net zero by 2050 but stating that climate policies should be set by lawmakers.
Holcim is acquiring a majority stake in Peruvian building materials company Cementos Pacasmayo for approximately USD 1.5 billion, aiming to expand its presence in Latin America and accelerate growth in line with its NextGen Growth 2030 strategy. The deal is expected to be EPS and free cash flow accretive in the first year, with synergies of around USD 40 million by year three, and is subject to regulatory approval, expected to close in H1 2026.
Amrize Ltd., the North American cement company spun off from Holcim, saw its shares decline by 13% in Zurich after its debut, while Holcim's shares rose. Amrize, the largest cement provider in North America, aims to unlock value through the spinoff, with a significant revenue of $11.7 billion in 2024 and plans for growth via mergers and acquisitions. Despite the initial drop, analysts see potential for high valuation, though near-term market challenges remain.
Holcim has completed its spin-off of Amrize, a North American building solutions company, to focus on its NextGen Growth 2030 strategy emphasizing sustainable construction and growth in attractive markets like Europe, Australia, and Latin America, with Amrize now trading independently on Swiss and New York exchanges.
European stock markets had a mixed start to the week, with the Stoxx 600 flat after reaching a two-year high last week. Oil and gas stocks rose while autos fell, and investors are preparing for a busy week of earnings, data releases, and central bank announcements. Philips shares dropped 6.2% after missing results expectations and reaching a U.S. settlement over a ventilator recall, while Swiss building materials firm Holcim gained 5% after announcing plans to spin off its North American business. Oil prices rose after Iran-linked missiles killed U.S. troops in Jordan, and Hong Kong-listed shares of Evergrande plunged 12.2% before being halted as a court ordered the liquidation of the Chinese real estate developer.
Holcim plans to spin off its North American operations in a New York flotation, aiming for a $30 billion valuation, while appointing Miljan Gutovic as the new CEO. The move, set to be completed in the first half of 2025, will see the company listing 100% of its North American business on the New York Stock Exchange, with Holcim retaining no stake. The U.S. business aims to increase annual sales to over $20 billion and generate operating profit of more than $5 billion by 2030, while the rest of Holcim's global business will remain listed on the Swiss blue-chip SMI index.
Swiss company Holcim is planning to separate its US cement business, a move that could potentially lead to a sale or a spinoff. This decision comes as part of the company's strategy to focus on its core markets and improve its performance.
