When a global cement giant decides to write a $1.4 billion check for your company, the stock market tends to notice. That's exactly what happened Tuesday to Cementos Pacasmayo S.A.A. (CPAC), whose shares rocketed higher after Switzerland-based Holcim Ltd. (HCMLY) announced it's acquiring the Peruvian cement maker's controlling shareholder.

Here's how the deal works: Holcim signed an agreement to purchase Inversiones Aspi S.A., which is part of the Hochschild Group and currently holds 50.01% of Cementos Pacasmayo. The transaction implies an enterprise valuation of approximately 5.1 billion Peruvian soles, which translates to about $1.4 billion. That price tag represents nine times EBITDA for the 12 months ended September 2025, a period the company describes as its strongest operating performance ever.

Why Investors Are Excited

The market reaction was swift and enthusiastic. Cementos Pacasmayo shares jumped as investors factored in both the implied takeover premium and the credibility boost that comes with backing from one of the world's largest building materials companies. There's something reassuring about having a deep-pocketed global player validate your business model with a billion-dollar bet.

Company executives struck an optimistic tone, emphasizing that the deal rewards long-term shareholders while positioning the cement maker for faster growth ahead. One senior leader framed the transaction as the payoff from decades of building a trusted brand and an efficient production network, noting that partnering with Holcim opens doors for employees and expands the company's international footprint.

What Happens Next

The acquisition still needs regulatory sign-offs, which is standard for these deals. Company officials expect the approval process to wrap up in the first half of 2026, assuming the customary reviews proceed without surprises.

CPAC Price Action: Cementos Pacasmayo shares were up 48.93% at $10.41 at the time of publication on Tuesday, hitting a new 52-week high.