Holcim Shares Jump After North America Spinoff Plan

By Adria Calatayud

Holcim shares jumped after the Swiss building-materials supplier unveiled plans to spin off its North America business, which could be valued at more than $30 billion.

At 0831 GMT on Monday, Holcim shares traded 5.7% higher to CHF67.92, taking the stock's gain over the last three months to more than 22%. This gave the company a market capitalization above 39 billion Swiss francs ($45.13 billion).

The company confirmed its plan to separate and take its North America unit public in the first half of 2025 after The Wall Street Journal reported the move.

Holcim also named its European head, Miljan Gutovic, as chief executive, to succeed Jan Jenisch, effective May 1.

News of the separation of Holcim's North American assets--which account for about 40% of the group's profit--came as a surprise, but the move seems smart, Berenberg analyst Harry Goad wrote in a note to clients.

"While not explicitly stated by management, we believe the clear rationale for such a move is to achieve a higher valuation for these U.S. assets, as they can be clearly valued against a U.S. peer group rather than when they reside within the global portfolio of the Switzerland-listed group," the Berenberg analyst said.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

January 29, 2024 03:49 ET (08:49 GMT)

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