Holcim Exits Nigeria, Sells Major Stake in Lafarge Africa to Huaxin Cement for $1bn

Swiss-based building materials leader, Holcim AG, has announced its decision to sell its Nigerian operations to China’s Huaxin Cement Co. in a deal valued at $1 billion.

The transaction involves the divestiture of Holcim’s 83.81% stake in Lafarge Africa PLC and is expected to close in 2025, pending regulatory approvals. The announcement was made in a statement released by Holcim on Sunday.

Strategic Portfolio Streamlining

The sale is part of Holcim’s broader strategy to streamline its portfolio by focusing on core markets. According to the company, “Holcim has signed an agreement with Huaxin Cement Ltd to sell its entire 83.81% shareholding in Lafarge Africa PLC, at an equity value of $1 billion on a 100% basis. The transaction is expected to close in 2025, subject to customary and regulatory approvals.”

This move also aligns with Holcim’s plans to spin off and list its North American business in the United States in 2025, leveraging high demand for sustainable construction materials in the region.

Expansion and Sustainability Goals

Holcim’s divestment in Nigeria is part of a strategic shift toward markets where demand for its innovative products, such as roofing and energy-efficient building materials, is growing rapidly. The company aims to consolidate its leadership in sustainable construction, particularly in North America, which faces a significant housing shortage.

Previous Divestments in Africa

Holcim’s latest sale is not its first divestment on the African continent. In 2021, the company sold its 75% stake in Lafarge Zambia to Huaxin Cement for $150 million. This followed regulatory approvals from Chinese and Zambian authorities.

Holcim’s CEO, Jan Jenisch, highlighted these transactions as steps toward transforming the company into a global leader in sustainable building solutions. He praised Huaxin Cement as a trusted partner capable of advancing these businesses.

“This divestment is another step in our transformation to become the global leader in innovative and sustainable building solutions, giving us the flexibility to continue investing in attractive growth opportunities. Huaxin has been a trusted partner for many years and we see the company as an ideal owner to further develop the business,” Jenisch stated.

The sale of Lafarge Zambia followed Holcim’s divestment of its Indian Ocean operations in late 2021. Since 2019, Holcim has achieved divestments exceeding $3.1 billion.

About Holcim

Holcim AG is a global leader in building materials and sustainable construction solutions, specializing in cement, concrete, aggregates, and innovative products with a focus on sustainability and recycling. The company employs over 70,000 people worldwide.