FLSmidth shares rise on cement division sale news

FLSmidth shares saw a 4.9 percent increase in value on the Copenhagen stock exchange after the company announced intentions to sell its cement business division on Monday evening. This action follows FLSmidth’s strategic move over the past year to split the company into two independent units, one serving the cement industry and the other serving the mining industry. The company believes it will be stronger by focusing solely on its mining industry customers, citing significant differences in market dynamics and fundamentals between the two industries, as well as limited overlap in customer bases and product lines. Mikkel Emil Jensen, a senior analyst at Sydbank, is not surprised by these plans and is optimistic about FLSmidth finding a buyer despite currently challenging market conditions.