Holcim to Exit Nigeria, Sells Lafarge Africa Stake to Huaxin Cement for $1 Billion
Swiss Giant Streamlines Global Operations, Targets Sustainable Growth Markets
Swiss cement and building materials manufacturer Holcim has announced its strategic exit from Nigeria, signing an agreement to sell its entire 83.81 per cent stake in Lafarge Africa Plc to China’s Huaxin Cement for $1 billion, marking a shift in the company’s global investment strategy.
The transaction, expected to close in 2025, is subject to customary and regulatory approvals, representing a pivotal moment for both companies and the Nigerian cement industry. Holcim’s decision stems from its broader corporate strategy to prioritize higher-margin products, strategic infrastructure investments, and green technologies. The move aligns with the company’s ongoing global portfolio optimization, which has seen similar divestments in recent years, including its 2021 majority stake sale in Zambian operations, also to Huaxin Cement.
The company’s strategic focus includes recent investments in low-carbon cement technologies, such as a partnership with US-based Sublime Systems, highlighting its commitment to sustainable building solutions. The divestment reflects the changing dynamics of Nigeria’s cement market, which is increasingly dominated by local players like Dangote Group and BUA Cement.
Established in 1959, Lafarge Africa has been a cornerstone of Nigeria’s industrial sector, operating four plants across the country with an impressive annual production capacity of 10.5 million tons. The company has been particularly noted for its commitment to green growth and decarbonization in the building materials sector.
Holcim stands as a global leader in building solutions, reporting CHF 27 billion in sales in 2023 and employing over 63,000 staff worldwide. The company’s strategic moves demonstrate a calculated approach to global market positioning and sustainability.
Huaxin Cement, the acquiring company, brings over a century of experience in the cement industry, with a global presence spanning more than 300 branches. This acquisition represents a significant expansion of the Chinese company’s international footprint.
The $1 billion transaction signals several key insights into the evolving landscape of international industrial investments. It highlights Holcim’s strategic pivot towards more profitable and sustainable markets, China’s increasing investment in African industrial assets, and the maturation of Nigeria’s domestic industrial capabilities.
As the transaction awaits regulatory approvals, industry observers will be watching closely to understand its implications for Lafarge Africa’s operational strategy, workforce, and long-term market position. The sale underscores the dynamic nature of global industrial investments, where strategic realignment, technological innovation, and sustainability considerations play increasingly critical roles in corporate decision-making.
