Holcim Exits Philippine Market, Sells to Chinese Firm for $807 Million

MANILA, Philippines — Switzerland-based cement giant Holcim Group is exiting the Philippine market after agreeing to sell its local business to China’s Huaxin Building Materials in a deal valued at about $807 million, the company announced on Sunday. This transaction will be completed in stages, as Holcim will initially sell a 67.623-percent majority stake to the Wuhan-based company for $527 million before divesting its remaining roughly 31-percent stake over the next three to five years for a minimum of $280 million. Holcim said that value may also increase “based on incremental value creation during this period.” READ: Holcim PH investing P2B in sustainability initiatives The sale of the majority stake is expected to close in the first half of 2027, subject to regulatory approvals. “Huaxin is a strategic and trusted partner and best positioned to further grow our business in the Philippines for the long-term,” Holcim Philippines CEO Mohit Kapoor said in a statement on Sunday. “Holcim Philippines’ market position and long-term market potential are promising, and Huaxin is committed to investing in its future growth as part of its international strategy,” Kapoor added. READ: Sumitomo unit buys 15% of Phinma cement firm The transaction marks the exit of one of the largest cement manufacturers in the Philippines, which operates four cement plants, one grinding mill, five ports and a nationwide distribution network with an annual cement production capacity of 10 million metric tons. In Luzon, Holcim operates two integrated cement plants, one cement grinding plant and one dry mix plant, while its Mindanao network consists of two integrated cement plants. In 2025, Holcim Philippines posted revenues of P22 billion, slightly higher than the P21.9 billion recorded a year earlier on stronger cement sales. However, its net loss before tax widened sharply to P4.2 billion from P1 billion in 2024. Further, the company’s cash flow—as measured by earnings before interest, taxes, depreciation and amortization—deteriorated to negative P1.2 billion, down 302.1 percent year-on-year. To recall, Holcim Philippines voluntarily delisted from the Philippine Stock Exchange in 2023 after Holderfin B.V. acquired an additional 594.95 million common shares, or 9.22 percent of the company’s outstanding capital stock, from Sumitomo Osaka Cement Co. That acquisition reduced Holcim’s public float to 5.05 percent, below the minimum requirement for listed companies. Holcim Group operates across 45 countries in Europe, Latin America, Asia, the Middle East, and Africa, where it employs more than 50,000 people. /cb