Source: Arise News
Swiss building materials giant Holcim AG has announced the sale of its Nigerian subsidiary, Lafarge Africa PLC, to China’s Huaxin Cement Co. The $1 billion transaction, which includes Holcim’s 83.81% stake in the company, is expected to be finalized in 2025, pending the necessary regulatory approvals.
Holcim’s decision to divest aligns with its global strategy to streamline its portfolio and concentrate on key markets. The company is focusing on leveraging growth opportunities in North America, where there is a rising demand for sustainable construction materials. Holcim also plans to spin off and publicly list its North American business in the U.S. next year, a move influenced by regulatory shifts and a growing housing shortage.
In an official statement, Holcim described the sale as part of its broader strategy to exit non-core markets and optimize operations:
“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 USD 1 billion on a 100% basis. The transaction is expected to close in 2025, subject to customary and regulatory approvals.”
This transaction continues Holcim’s trend of divesting from African markets. In 2021, the company sold its 75% stake in its Zambian operations to Huaxin for $150 million. This was part of a broader series of divestments, including the sale of its Indian Ocean cluster, which has collectively generated over $3.1 billion since 2019.
Holcim’s CEO, Jan Jenisch, emphasized that these sales are central to the company’s transformation goals:
“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.”
Holcim AG is a global leader in sustainable construction materials, specializing in cement, concrete, aggregates, and innovative building products. With a workforce of over 70,000 employees globally, the company is committed to sustainability and recycling as it reshapes its portfolio to meet changing market needs.
This latest deal signifies Holcim’s dedication to scaling its presence in high-demand markets while ensuring a responsible transition in regions like Africa. It also marks another milestone in the company’s efforts to align its operations with global growth trends and sustainability objectives.
