Swiss Cement Giant Holcim Exits Nigeria, Sells Lafarge Stake to Huaxin Cement for $1b

Swiss Cement Giant Holcim Exits Nigeria, Sells Lafarge Stake to Huaxin Cement for $1b
Swiss Cement Giant Holcim Exits Nigeria, Sells Lafarge Stake to Huaxin Cement for $1b
Holcim’s exit from Nigeria follows a similar divestment in Zambia in 2021, also to Huaxin Cement.

Abuja, Nigeria – Swiss-based cement and building materials company Holcim has announced its decision to exit the Nigerian market after 65 years of operation.

The company will sell its 83.8% stake in Lafarge Africa Plc to China’s Huaxin Cement for $1 billion.

The deal, which is part of Holcim’s strategy to focus on high-growth regions and sustainable business practices, is expected to be finalized by 2025, pending regulatory approvals.

In a statement, Holcim confirmed:

“Holcim has signed an agreement with Huaxin Cement Ltd to sell its entire 83.81 per cent shareholding in Lafarge Africa PLC, at an equity value of $1 billion on a 100 per cent basis.”

This decision reflects Holcim’s commitment to pivot toward higher-margin products, infrastructure projects, and green technologies. The company recently expanded its investment in low-carbon cement through a collaboration with U.S.-based Sublime Systems.

Holcim’s exit from Nigeria follows a similar divestment in Zambia in 2021, also to Huaxin Cement. The move underscores Nigeria’s cement industry dynamics, where local players like Dangote Group and BUA Cement now dominate the market.

Lafarge Africa, which has been operational since 1959, boasts a production capacity of 10.5 million tons per annum across its four Nigerian plants. The company has been recognized for its contributions to green growth and decarbonization within the building materials sector.

Holcim, a global leader in construction solutions with reported sales of CHF 27 billion in 2023, employs over 63,000 staff worldwide. The company has been streamlining operations to focus on sustainability and strategic growth areas.

Its buyer, Huaxin Cement, is a century-old player in the cement industry with operations spanning over 300 branches globally. The acquisition of Lafarge Africa is expected to bolster Huaxin’s international footprint.


Copyright 2024 REPORT AFRIQUE (RA). Permission to use portions of this article is granted provided appropriate credits are given to www.reportafrique.com and other relevant sources.This Article is Fact-Checked. See Policy.
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