Aug 2 (Reuters) - Swiss building materials supplier Holcim

Group said on Sunday it plans to sell its Philippines

business to China's Huaxin Building Materials in a

deal that could raise at least $807 million.

Holcim will sell an initial 68% stake for $527 million with

the remainder to be sold over the next three to five years for a

minimum price of $290 million.

This would lead to an overall valuation of $807 million,

although the figure could rise "based on incremental value

creation during this period," Holcim said.

Money raised from the sale will be used to fund large

acquisitions and also further investment in Holcim's existing

business.

The Swiss company has been focusing more on Europe, Latin

America, North Africa and Australia as it reshapes its business

after spinning off its North American operations into a separate

company last year.

Acquisitions have been identified as a key part of Holcim's

growth strategy, with the company planning to make around 15

deals in 2026.

Holcim last year said it had 3 billion Swiss francs to 4

billion Swiss francs ($3.72 billion to $4.95 billion) to spend

on acquisitions up to 2030, and could raise up to 6 billion

Swiss francs more from divestments and extra borrowing for large

deals and share buybacks.

Holcim CEO Miljan Gutovic on Friday said the company had a

"very healthy pipeline" of acquisition projects in Latin

America, Europe and also parts of Asia, Middle East and Africa,

and was also considering large deals.

"We are constantly screening our landscape, from walling and

flooring solution companies all the way to roofing, and we

believe there are some very attractive markets," he told

analysts after the company's second-quarter results.

"I'm confident that we will have a strong momentum on the

M&A front in the second half of this year," Gutovic added.

($1 = 0.8074 Swiss francs)