Holcim’s Stock Surges as Building Materials Maker Announces Intent to List Unit in the US
Shares of Holcim Ltd. rose Monday after the company announced plans to spin off its North American unit and list in the United States. The decision comes 15 months after Holcim admitted that French conglomerate Lafarge was funding the Islamic State. The group managed to take control of the operation of its factories in Syria and eventually reached a settlement with American authorities worth approximately $778 million.
The listing and tender is expected to be completed in the first half of next year and aim to create a North American company with a sales target of over $20 billion by 2030. Despite this opposition, Holcim remains listed on the SIX Swiss Stock Exchange.
President and CEO Jan Jenisch will lead the North American operations, and the role of Holcim CEO will be transferred to the country of Australia first and the board of directors to Miljan Gutovic, effective May 1.
Jenisch spoke about the prospects of the American brand, saying that it would “unlock” the company’s ability to be an attractive partner in a world where the most beautiful business designs are created. Holcim shares rose 4.3 percent to 67.02 Swiss francs (about $77.78) per share in morning trading on the Zurich 6 stock exchange. The stock initially rose to 67.96 francs and rose almost 6% shortly after the open.
