FRANKFURT, Jan 30 (Reuters) - Heidelberg Materials, the world's second-largest cement maker, is eager to pursue more deals in the U.S. in 2025 and is confident that the policies of the new President will enhance its business prospects.
In his first remarks since Trump assumed office last week, the CEO of German-listed Heidelberg Materials expressed optimism about the new administration's focus on growth. It aims to generate industrial employment and enhance infrastructure significantly. These initiatives are likely to bolster our business, allowing us to play a substantial role, stated Dominik von Achten, who led Heidelberg Materials' U.S. operations for nearly eight years.
Heidelberg Materials, a competitor of Holcim, generates approximately a quarter of its revenue in North America, where it has about 9,000 employees, constituting around 18% of its global workforce. The USA is a pivotal region for our expansion, noted von Achten.
Amid expectations of stricter U.S. trade policies characterized by tariffs and pressure on foreign firms to expand locally, companies worldwide are strategizing their positions.
We manufacture locally in North America, sell our products there, and have local employees. These are factors that I believe the new U.S. president deems significant, said von Achten.
The company allocated roughly 500 million euros ($520 million), half of its M&A budget, to U.S. deals last year, a trend that von Achten indicated may continue in 2025 with additional "enticing opportunities".
Heidelberg Materials targets enhancing its market share in the southeastern U.S., an area where it recently agreed to acquire a company, according to von Achten.
With valuations typically higher for construction material assets in the U.S., some companies, including Heidelberg Materials' larger rival, have contemplated listing in the country. Von Achten, however, voiced skepticism about this strategy, citing no valuation shift due to similar moves announced by competitors.
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