Swiss building materials giant Holcim AG has announced the sale of its Nigerian subsidiary, Lafarge Africa PLC, to China’s Huaxin Cement Co. The deal, valued at $1 billion, involves Holcim’s 83.81% stake in the company and is set to close in 2025, pending regulatory approvals.
Strategic Portfolio Shift
Holcim’s decision to divest aligns with its global strategy to streamline operations and focus on core markets. The company aims to leverage growth opportunities in North America, where demand for sustainable construction materials is soaring. Holcim plans to spin off and list its North American business in the U.S. next year, driven by regulatory pressures and a housing shortage.
According to a statement issued by Holcim, the sale is part of its broader effort to optimize operations and exit non-core markets:
> “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.”
Holcim’s History of Divestments in Africa
This is not Holcim’s first exit from the African market. In 2021, the company sold its 75% stake in its Zambian business to Huaxin for $150 million. That sale was part of a series of divestments, including the Indian Ocean cluster, which have collectively brought in over $3.1 billion since 2019.
Holcim’s CEO, Jan Jenisch, highlighted the transformation goals behind these sales:
> “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.”
What You Should Know
Holcim AG is a global leader in sustainable construction solutions, specializing in cement, concrete, aggregates, and innovative building products. With over 70,000 employees worldwide, the company remains focused on sustainability and recycling as it reshapes its portfolio to meet evolving market demands.
The deal marks another significant step in Holcim’s commitment to scaling its operations in high-demand markets while ensuring responsible transitions in regions like Africa.
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