LafargeHolcim reviewing sale of Indonesian assets

LafargeHolcim (Switzerland) is considering the sale of its Indonesian subsidiary, Holcim Indonesia, for a total consideration of US$2bn, according to Bloomberg and local reports.
 
The Indonesian cement market has suffered from overcapacity and price pressure in recent years, placing pressure on profit margins. Nevertheless, the long-term potential of the market and Holcim Indonesia’s strong market position make this a significant and surprising move.
 
Potential buyers include China’s majors, including CNBM and Anhui Conch, although the latter is already well established in the market. Other regional players include Siam City Cement (Thailand), Siam Cement Group (Thailand) and Ultratech (India). The assets would also fit well with CRH (Ireland), although Albert Manifold, CEO, is known to be sceptical about the value creation of Asian acquisitions in the current market environment.
 
LafargeHolcim operates five plants with 14.7Mta capacity in the country, according to The Global Cement Report.