Holcim Group agreed to sell its Philippines cement and building-materials business to China’s Huaxin Building Materials in a transaction valued at least $807 million. The multi-stage deal, expected to close in the first half of 2027, will fund major global acquisitions as the Swiss supplier reshapes its portfolio.
The Swiss building-materials giant announced on Sunday that it has struck an agreement to offload its entire subsidiary in the Philippines to Huaxin Building Materials. The transaction hands control of a critical industrial producer over to a foreign buyer in one of Southeast Asia’s most closely watched construction markets, where cement demand remains tied to ongoing infrastructure spending, population growth, and housing development.
Phased Sale Structure and Valuation Terms
The agreement divides the divestment into two distinct phases over several years. Initially, Holcim will sell a 67.62% majority stake to Huaxin for $527 million, with other financial trackers noting a rounded 68% figure in initial trading notices. That initial major transaction is scheduled to close in the first half of 2027.
Following the majority handover, the remaining interest of roughly 31% will be transferred over a three- to five-year timeframe. This subsequent tranche guarantees a minimum of $280 million, bringing the baseline valuation to $807 million. According to Reuters, the total price could climb based on incremental value creation during this period
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Strategic Capital Pivot Toward Global Acquisitions
The capital generated from the Philippines exit will be channeled directly into large acquisitions and further investments across Holcim’s existing regional businesses. The Swiss group has spent recent months aggressively reshaping its global footprint. Following the spinoff of its North American operations in June 2025 and the divestment of its Kenya and Nigeria units, management is prioritizing high-margin markets in Europe, Latin America, North Africa, and Australia.
Acquisitions have become a pillar of the company’s expansion strategy. Holcim plans to execute roughly 15 deals throughout 2026, having already closed transactions with French manufacturer Alkern, Germany’s Xella, and Peruvian producer Cementos Pacasmayo. The company previously earmarked between 3 billion and 4 billion Swiss francs ($3.72 billion to $4.95 billion) for M&A spending through 2030, with room to raise up to 6 billion Swiss francs more through asset disposals and additional borrowing.
Executive Outlook on Merger and Acquisition Momentum
Speaking to analysts following the release of the company’s second-quarter results, Holcim CEO Miljan Gutovic emphasized that the organization maintains an active acquisition roadmap across multiple continents.
Gutovic also expressed confidence in the company’s near-term dealmaking pipeline, telling analysts, I’m confident that we will have a strong momentum on the M&A front in the second half of this year.
That pipeline includes potential large-scale transactions spanning Latin America, Europe, parts of Asia, the Middle East, and Africa.
Huaxin Expansion and Regional Supply Stakes
For the buying party, the deal mirrors a broader strategy by Chinese cement manufacturers to look abroad as domestic construction activity cools down. Huaxin has previously partnered with the Swiss group, including acquiring Holcim’s Nigeria business in a $1 billion deal in December 2024.
Beyond corporate balance sheets, the transaction places hard industrial assets under foreign oversight in a jurisdiction sensitive to foundational material supply chains. Because cement forms the base of ports, roads, and housing, ownership shifts carry direct implications for project timing and pricing. The agreement still requires standard regulatory clearances and closing conditions before the transfer becomes final.
