Divestments Will Help Maintain Holcim's Generous Capital Allocation and Attractive Cash Yields

The merger between Lafarge and Holcim in 2015 created the largest producer of building materials and introduced significant exposure to perceived faster-growing emerging markets, albeit with lower barriers to entry. However, the recent divestment of the Indian cement business (the group's second-largest geographic market) and a series of acquisitions focusing on lighter building materials have transformed Holcim's exposure to be predominantly geared toward mature markets.