By Ayomide Otitoju
Swiss cement giant Holcim has announced plans to divest its Nigerian operations by selling its nearly 84% stake in Lafarge Africa to China’s Huaxin Cement. The company disclosed this move in a statement released on Sunday, highlighting it as part of a broader strategy to streamline its portfolio and prioritize growth in high-potential regions.
“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 statement read.
The transaction, set to close in 2025, is subject to regulatory approval. Holcim provided no further explanation for the specific decision to sell its Nigerian stake.
This development follows Holcim’s recent divestments in East Africa. In November 2023, the company signed agreements to sell its operations in Uganda and Tanzania, advancing its focus on consolidating its presence in core markets and leading in innovative, sustainable building solutions.
Huaxin Cement, known for its growing footprint in Africa, continues to expand aggressively on the continent. In 2021, it acquired a 75% stake in Lafarge Zambia and the entirety of Lafarge Cement Malawi, both originally part of Lafarge before its 2015 merger with Holcim. More recently, Huaxin purchased South Africa’s Natal Portland Cement Company in 2023.
Holcim has been focusing on sustainable growth in its core markets, emphasizing higher-margin products and strategic investments in infrastructure. The company has also enhanced its environmental initiatives, including acquiring a stake in Sublime Systems, a U.S.-based start-up developing low-carbon cement.
In October, Holcim reported a slightly better-than-expected recurring operating profit of 1.67 billion Swiss francs ($1.90 billion) for Q3 2024, underscoring its financial resilience amid strategic shifts.
