(Dec 16): Holcim Ltd is buying a majority stake in Peruvian building materials producer Cementos Pacasmayo in its largest acquisition in Latin America.
The Zug, Switzerland-based company will acquire 50.01% of the Lima- and New York-listed company from the controlling Hochschild family for about US$550 million, according to a spokesperson. The transaction value of all of Cementos Pacasmayo is US$1.5 billion, including US$400 million of net debt.
Holcim said the deal will strengthen its presence in one of its most profitable regions — Latin America. Vontobel analyst Mark Diethelm welcomed the deal strategically and financially as it strengthens mid-term earnings visibility. Holcim shares rose as much as 1.7% on Tuesday.
Holcim is likely to increase its ownership of Cementos Pacasmayo beyond the current level. Once this transaction closes in the first half of 2026, it will trigger a mandatory tender offer for an additional 25% of the shares at a later stage, in line with regulatory requirements, the spokesperson said.
Pacasmayo is Peru’s second largest cement company, operating mostly in northern Peru. Unacem is stronger in central Peru while Cemento Yura leads in the south. Those three companies controlled 84% of the market as of August. Ratings agencies have noted a “low rivalry within competitor companies” in the Peruvian cement industry. Peru’s antitrust regulator fined Yura about US$18 million for “restricting competition” earlier this year.
One of Peru’s wealthiest families, Hochschild is known primarily for its investments in mining, including precious metal producer Hochschild Mining Plc and rare earths firm Aclara Resources Inc.
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Cementos Pacasmayo is expected to record net sales of US$630 million this year. It has three plants with a combined annual capacity of about five million tonnes, as well as 28 ready-mix and precast concrete plants.
The acquisition comes a year after Holcim entered Peru, where it has made a number of purchases. Year-to-date, the Swiss building materials manufacturer has made 15 acquisitions — on the mark of what chief executive officer Miljan Gutovic projected, while it spun off its North American operations Amrize Ltd.
Earlier this year, Bloomberg reported Holcim could be interested in Cemex SAB’s Colombian operations.
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In October, Holcim announced a US$2.2 billion acquisition of Xella from private equity firm Lone Star Funds to beef up its building solutions division as it aims to strengthen its offerings away from traditional cement. The company aims to grow the unit’s net sales — including from flooring, walling and roofing — to 50% of the group total by 2030.
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