The case centres on allegations that Lafarge, via its subsidiary Lafarge Cement Syria, paid millions of euros in 2013 and 2014 to armed groups and intermediaries to ensure continued production at its Jalabiya facility in northern Syria during the country’s civil war.

The ruling follows a 2022 case in the United States in which Lafarge pleaded guilty to conspiring to provide material support to designated terrorist organizations and agreed to pay a $778 million fine, marking the first time a corporation faced such charges under U.S. law.

French prosecutors allege that the company made payments totaling at least 4.7 million euros ($5.5 million) to groups including Islamic State and Jabhat al-Nusra, in exchange for access to raw materials and safe passage for employees and goods.

The payments allegedly continued until September 2014, when Islamic State fighters seized control of the plant.Lafarge completed construction of the $680 million facility in 2010, shortly before the outbreak of the Syrian conflict in 2011, triggered by protests against then-president Bashar al-Assad.

While many multinational firms exited Syria in 2012, Lafarge maintained operations, evacuating expatriate staff but retaining local employees until the site fell under militant control.Defendants include the company, its former chief executive Bruno Lafont, several former operational and security staff, and two Syrian intermediaries.

They face charges including financing terrorism and violating international sanctions.The French national counter-terrorism prosecutor’s office has argued that Lafarge acted with “a single aim: profit,” seeking the maximum corporate fine of 1.12 million euros and confiscation of 30 million euros in assets.

Prosecutors have also requested a six-year prison sentence for Lafont, who has denied knowledge of any illicit payments.During the trial, former deputy managing director Christian Herrault said the decision to keep the plant operating was driven by concern for local employees rather than financial gain.

Lafarge was acquired by Swiss group Holcim in 2015, which has said it had no knowledge of the Syria-related dealings.A separate judicial investigation into potential complicity in crimes against humanity remains ongoing.

The case originated from a 2017 inquiry following media reports and complaints filed by the French finance ministry, non-governmental organizations, and former employees.

The move underscores Holcim’s growing commitment to sustainable, high-performance building solutions and represents a key milestone in its transformation beyond traditional cement production.

The acquisition of Xella highlights Holcim’s ambition to expand its footprint in the €12 billion European walling market. Xella is widely recognized for its energy-efficient and environmentally friendly construction materials.

Its well-known brands—Ytong, Silka, Hebel, and Multipor—are already established across 21 European markets, serving both residential and commercial sectors. The company employs over 4,000 professionals and is projected to generate around €1 billion in sales in 2025.

Holcim stated that the acquisition would be earnings-accretive in its first year and values Xella at 8.9 times its projected 2026 EBITDA. The transaction is expected to be finalized in the second half of 2026, pending regulatory approval.

CEO Miljan Gutovic emphasized that this acquisition is part of Holcim’s long-term sustainability vision. “Xella will enhance our customer offering in the growing walling market, enabling greater cross-selling and systems-selling opportunities,” he said. “This deal strengthens our commitment to sustainable construction and innovation.”

The move reflects a strategic pivot for Holcim, which has steadily reduced its reliance on cement—a business often criticized for high carbon emissions—and diversified into building materials, roofing, insulation, and green solutions.

The acquisition of Xella aligns with Holcim’s sustainability roadmap and supports its goal of achieving net-zero emissions by 2050.

Industry analysts view the deal as a positive step in Holcim’s transition toward a more balanced and profitable portfolio. By acquiring a company known for advanced walling systems, Holcim positions itself to meet Europe’s increasing demand for energy-efficient and low-carbon construction materials.

Xella’s technologies are designed to improve insulation, durability, and thermal efficiency—all key factors in sustainable architecture. The combination of Holcim’s global scale and Xella’s product innovation is expected to create synergies across Europe’s construction sector.

Financial experts note that this acquisition not only strengthens Holcim’s market presence but also enhances its competitive edge in sustainable building materials.

It complements recent strategic investments in insulation and roofing, creating a diversified platform to support Europe’s green transition and urbanization trends.

Holcim has been on a clear mission to reduce debt, boost earnings, and invest in high-value, sustainable sectors. Under Gutovic’s leadership, the company has pursued a disciplined approach to acquisitions, focusing on scalable businesses with strong sustainability credentials. The Xella purchase fits perfectly into this framework.

The deal is also expected to accelerate innovation and digital integration across both companies. Holcim aims to leverage Xella’s expertise in prefabrication and modular construction, reducing on-site waste and improving efficiency—a major advantage in meeting the EU’s strict energy and carbon regulations.

In recent years, Holcim has taken major steps toward its transformation, divesting non-core cement assets and investing heavily in circular construction, smart design, and carbon-efficient materials.

The Xella acquisition, therefore, represents not only growth but also a strategic evolution toward a more sustainable and future-ready construction model.

If successfully completed, the acquisition could make Holcim one of Europe’s largest providers of integrated building systems, expanding its product offerings from foundations to finishing layers.

Gutovic concluded, “With Xella joining the Holcim family, we are reinforcing our leadership in sustainable building solutions and expanding our ability to create value for customers, shareholders, and communities.”

The €1.85 billion deal reaffirms Holcim’s role as an innovation-driven global leader committed to sustainability, resilience, and forward-thinking construction practices.