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Jan 29 2024, 08:45 GMT
Holcim
Holcim to separate the group
- Sectors : Building Materials
- Companies : Holcim
DAVY VIEW
In our view, Holcim’s decision to spin out its North American business is a sensible one. It will likely create valuation upside, allowing both businesses to pursue contrasting strategies and will have a limited effect operationally. The upside will depend on US investors’ appetite for Holcim’s diversified, multi-strand US business – this will take time – but the valuation of the original business (6.5x EBITDA) makes such a corporate action attractive.
