NEWSLETTER
© Reuters. FILE PHOTO: The logo of Swiss cement manufacturer Holcim at its headquarters in Zug, Switzerland, October 26, 2022. REUTERS/Arnd Wiegmann/File Photo
(Reuters) -Swiss construction materials giant Holcim (SIX:) is close to a deal to separate its North American business that could be worth more than $30 billion, the Wall Street Journal reported Saturday.
The deal could be announced next week, assuming plans don't fall apart at the last minute, according to the report, citing people familiar with the matter.
Holcim did not immediately respond to a request for comment on the report.
Holcim has about 350 sites in 43 U.S. states and employs 7,000 people, according to its website.
In July last year, the Swiss company said North America was on track to reach around 40% of group sales, rising to about $12 billion, up from $10 billion a year earlier.
The Swiss cement maker has been betting on new business in the United States from manufacturers moving production to their countries to avoid bottlenecks in the supply chain and take advantage of government subsidies.
North America remains an attractive market for Holcim investments and acquisitions, the head of the cement maker's European region told Reuters this month.
“Today, 40% of our business is North America. And we've been in North America for the last 50 years. Therefore, we have a very strong geographic footprint in the United States, but also in Canada,” said Miljan Gutovic, in an interview on the sidelines of the annual meeting of the World Economic Forum (WEF) in Davos, Switzerland.
“We have many initiatives throughout North America to increase the capacity to decongest our plants. And we are also looking at mergers and acquisitions,” Gutovic added.
