- Holcim has announced its exit from Nigeria
- The Swiss cement maker sold its 83.8% stake in Lafarge Africa to China’s Huaxin Cement in a $1 billion deal
- Lafarge Africa has confirmed the sale
Swiss cement and other building materials maker, Holcim, has announced the exit of its Nigerian business following the sale of its 83.8 per cent stake in Lafarge Africa to China’s Huaxin Cement in a deal valued at $1 billion.
After nearly 65 years of operation in Nigeria, Holcim joins other companies that are exiting Nigeria. It said the sale is to streamline its portfolio and focus on high-growth regions.
This was contained in a statement by the company, released on Sunday, December 1, which added that the extant transaction is expected to close in 2025, subject to regulatory approvals by the Nigerian authorities.
The statement read, “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.
“The sale aligns with Holcim’s strategy to streamline its portfolio and focus on high-growth regions, including the upcoming spin-off of its North American business, which remains on track for a US listing in the first half of 2025.
“The transaction is expected to close in 2025, subject to regulatory approval.”
Lafarge Africa confirms the sale
Lafarge Africa has also confirmed the sale agreement in a regulatory filing at the Nigerian Exchange (NGX) on Sunday.
The company noted that its largest shareholders, Caricement B.V (Caricement) and Associated International Cement Limited (AICL), had informed its board of directors of the sale agreement.
According to the transaction details, Caricement’s sole shareholder, Holderfin B.V, part of the Holcim Group, reached agreement with Hainan Huaxin Pan-Africa Investment Co. Limited and Huaxin (Hong Kong) International Holdings Limited, part of Huaxin Cement, pursuant to which they will acquire respectively full ownership of Caricement and a second entity, Davis Peak Holdings Limited, which will hold the shares held currently by AICL.
Lafarge stated, “Upon completion, the Huaxin Cement entities will hold a combined 83.81 per cent shareholding in Lafarge Africa Plc. This transaction is subject to regulatory approvals and is expected to close in 2025.
“Following completion of this transaction, Lafarge Africa Plc will remain listed on NGX and, subject to regulatory approvals, Huaxin Cement intends to launch a mandatory takeover offer in compliance with applicable laws and regulations.”
Holcim and Huaxin are focused on growth and innovation
Holcim, in November 2023, said it had signed deals to sell its businesses in Uganda and Tanzania aimed at consolidating its leadership in core markets as the global leader in innovative and sustainable building solutions.
Holcim had been focusing on sustainable growth in its core markets, higher-margin products, and strategic infrastructure investments.
The company is also working to enhance its environmental credentials, having taken a stake in Sublime Systems, a US tech start-up focused on low-carbon cement.
In October 2024, Holcim reported a recurring operating profit of 1.67 billion Swiss francs ($1.90 billion) for the three-month ended September 2024, which is slightly higher than the 1.65 billion francs analysts' forecast.
Per Reuters, the Holcim deal is the latest in a series of African acquisitions by Huaxin Cement. In 2021, Huaxin Cement announced it had agreed to buy two businesses that were part of Lafarge, which merged with Holcim in 2015: a 75 per cent stake in Lafarge Zambia and all of Lafarge Cement Malawi.
Huaxian Cement also announced the purchase of South Africa’s Natal Portland Cement Company last year.
10 companies that have exited Nigeria in the last 2 years
Meanwhile, TheRadar reported that due to economic instability in Nigeria, many businesses have exited the country, adding to the unemployment statistics and the burden of Nigerians’ daily lives.
TheRadar spotlighted 10 companies that have left Nigeria in the last two years.
