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 for $1 billion. The deal, which includes the valuation of a 100% stake, was revealed in a statement released on Sunday.
According to Holcim, the sale aligns with its strategy to streamline operations and prioritize growth in high-potential regions. The company is also preparing to spin off its North American business, targeting a U.S. listing in the first half of 2025.
While the transaction awaits regulatory approval and is expected to close in 2025, Holcim did not elaborate on the specific reasons behind the divestment.
This sale continues a pattern of restructuring for Holcim in Africa. In November 2023, the company disclosed agreements to sell its businesses in Uganda and Tanzania, further consolidating its presence in core markets.
Huaxin Cement’s Expansion in Africa
The acquisition is the latest in a series of African investments by Huaxin Cement. In 2021, the company purchased a 75% stake in Lafarge Zambia and fully acquired Lafarge Cement Malawi. It also expanded its portfolio in 2023 by acquiring South Africa’s Natal Portland Cement Company.
Focus on Sustainability and Innovation
Holcim has been directing efforts toward sustainable growth and environmental initiatives. In recent years, it invested in Sublime Systems, a U.S.-based startup specializing in low-carbon cement.
The company reported a recurring operating profit of 1.67 billion Swiss francs ($1.90 billion) in the third quarter of 2024, slightly exceeding market expectations.
