Several companies have effectively utilized mergers and acquisitions (M&As) and divestments as strategies to enhance their businesses. Holcim Group stands out as a prime example of a company proficient in M&As.
Despite the initial skepticism when CEO Miljan Gutovic expressed intentions for numerous deals, the Swiss-based building conglomerate is set to gain $1 billion from the divestment of its stake in Lafarge Africa to Huaxin Cement, a Chinese company. The transaction is scheduled for completion in 2025, pending regulatory approvals.
The Lafarge acquisition in 2015 was a pivotal move for Holcim, aimed at revitalizing Lafarge’s presence. With Lafarge being Nigeria’s third-largest cement producer, this divestment deal signifies a lucrative exit for Holcim, allowing them to focus on their next ventures.
Holcim’s proactive approach to acquisitions is evident through its recent activities, including multiple acquisitions and divestments in various regions. Additionally, the company is strategically positioning itself in the Kenyan market through ongoing negotiations involving Bamburi Cement.
Noteworthy is Holcim’s plan to restructure its North American operations and initiate a public offering in 2025.