LafargeHolcim to consider pulling out of more markets

LafargeHolcim is muling over the option to withdraw from several markets to make last year's merger a success, chairman Beat Hess told weekly Sonntagszeitung.

"We will be present in less countries for sure," Hess was quoted as saying. The sale of operations in several countries was an option, he said.

While the new company generates 80 per cent of its operational earnings before taxes, depreciation and amortisation in 25 countries, Mr Hess added that there was "much potential for improvement" in another 25 countries. "Either we succeed in strengthening these operations through targeted investments or we have to see whether other owners could do better," he said.

For the remaining 40 countries the Switzerland-based firm operates in, the question was how to reach the target to earn its capital costs in the foreseeable future. LafargeHolcim could well invest elsewhere by using the proceeds coming from a sale.

The company has already exceeded its 2016 goal of making divestments worth CHF3.5bn and said in August it had extended the programme to CHF5bn by the end of next year.