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Holcim (OTCPK:HCMLF) (OTCPK:HCMLY) confirmed a groundbreaking move on Sunday as it announced plans to spin off its entire North American business – a strategic decision that could potentially unlock a value in excess of $30 billion. Furthermore, the company revealed that Miljan Gutovic, the current head of its European operations, will assume the role of CEO, succeeding Jan Jenisch, effective May 1.
Holcim’s (OTCPK:HCMLF) (OTCPK:HCMLY) North American operations stand as one of the largest providers of cement, commercial flat roofing materials, and ready-mix concrete. Impressively, these operations contributed 35% of the parent company’s total net sales, raking in over 29 billion Swiss francs (approximately $33.6 billion), a figure that the company has hinted may have surged to around 40% as of last year.
Holcim (OTCPK:HCMLF) (OTCPK:HCMLY) has set its sights on taking the North American business public in the U.S. during the first half of next year. The company emphasized that this strategic spinoff will “reinforce its capacity to maximize value creation with its well-balanced footprint and dominant market positions across Europe, Latin America, Asia, the Middle East, and Africa.”
In a grand vision for the future, the company aims to propel the annual sales of the North American business from approximately $11 billion at present to an impressive $20 billion or more. Additionally, it seeks to generate an operating profit exceeding $5 billion by the year 2030. This target underscores the company’s resolute ambition and belief in the untapped potential of its North American arm.
