Swiss cement giant Holcim has announced its exit from the Nigerian market through the sale of its nearly 84% stake in Lafarge Africa to China’s Huaxin Cement.
The $1 billion deal, representing 100% of Lafarge Africa, is expected to close in 2025 pending regulatory approval.
The move is part of Holcim’s broader strategy to streamline its portfolio and prioritize high-growth regions. This aligns with its plans to spin off its North American operations, targeting a U.S. listing in the first half of 2025. Holcim did not disclose specific reasons for the Nigerian divestment in its announcement on Sunday.
President Bola Tinubu, who took office a year ago, has implemented policies that are reportedly driving investors out of Nigeria. Despite claims of attracting significant foreign direct investments (FDIs), recent reports indicate a decline in actual investment inflows during his administration.
Meanwhile, this sale builds on Holcim’s recent divestments in Africa. In November 2023, the company signed agreements to sell its businesses in Uganda and Tanzania. These steps underline Holcim’s focus on consolidating its leadership in core markets as the global leader in sustainable and innovative building solutions.
The transaction also highlights Huaxin Cement’s growing presence in Africa. The Chinese company has been active in acquisitions across the continent, purchasing Lafarge’s operations in Zambia and Malawi in 2021 and acquiring South Africa’s Natal Portland Cement Company last year.
Holcim’s strategic pivot includes investments in sustainable growth, high-margin products, and infrastructure. Recently, the company acquired a stake in Sublime Systems, a U.S. start-up specializing in low-carbon cement. Holcim also reported a better-than-expected recurring operating profit of 1.67 billion Swiss francs ($1.90 billion) for Q3 2024, showcasing its robust financial position.
This Nigerian divestment further underscores Holcim’s commitment to reshaping its global portfolio to align with evolving market demands and sustainability priorities.
