LafargeHolcim reportedly considering Australia, New Zealand exit

LafargeHolcim is believed to be considering an exit from Australia and New Zealand, as part of its strategic portfolio review of non-core assets.

Australian investment bankers are said to be trying to secure an advisory role to the company ahead of a potential sale that could be worth up to AUD3bn, according to The Australian Business Review. Talk of the potential Australasian sale emerged within the local investment banking community about six weeks ago. A decision on whether it exits the region will be made in the first quarter next year, sources say.

LafargeHolcim owns a 100 per cent stake in Holcim Australia (aggregate/concrete) and a 50 per cent stake in Cement Australia (5.3Mta of capacity with HeidelbergCement).

The article also mentions that a private equity firm, CRH and Votorantim Cimentos could be potential acquirers.

LafargeHolcim planned to raise CHF3.5bn ($4.7bn) next year from selling off cement assets around the world as it adjusted to tough conditions in markets such as India and China. The company announced the portfolio review after missing third-quarter sales and earnings expectations as the stronger Swiss franc and lower prices weighed on its first results since its creation through the merger.