China's Huaxin Buys 68% Of Holcim's Philippine Cement Business For $527M

Swiss building materials group Holcim will sell a nearly 68 percent controlling stake in its Philippines cement business to China's Huaxin Building Materials for $527 million, the companies announced Sunday, August 2, 2026. The sale is expected to close in the first half of 2027.

The agreement also gives Holcim the option to sell its remaining stake within three to five years for a minimum of $280 million, bringing the deal's total potential value to $807 million. Holcim said the structure allows it to capture additional cash upside depending on how the business performs during the transition period.

The transaction ranks as Holcim's largest divestment since it sold its Nigerian business, also to Huaxin, in a $1 billion deal in December 2024. It follows Holcim's spin-off of its North American operations last year, part of a broader restructuring that has narrowed the group's focus toward Europe, Latin America, North Africa and Australia.

Holcim said proceeds from the sale would fund acquisitions and further investment in its remaining core markets. The company reported CHF 26.4 billion in net sales and CHF 5.0 billion in recurring earnings before interest and tax in its 2024 annual report, alongside a leverage ratio of 1.2 times.

For Huaxin, the deal extends an established pattern of expansion into markets where Holcim has been exiting, following the Nigerian acquisition and a separate exit from Zambia. Chinese cement producers have increasingly looked abroad for growth as domestic construction activity in China has cooled in recent years.

The Philippines represents a strategically significant market for that expansion. Population growth, sustained infrastructure spending and ongoing housing demand continue to support building-materials consumption in the country, positioning Huaxin to gain a foothold in a market tied closely to long-term public works and private development.

Neither company disclosed whether the transaction would affect Holcim Philippines' existing workforce, operations or investment plans going forward. The deal remains subject to customary closing conditions and regulatory approvals before the initial stake transfer can be completed.

The sale comes weeks after Holcim upgraded its 2026 outlook for organic sales growth to 5 percent, up from a previous range of 3 to 5 percent, citing a recovery in housing construction activity across its markets.