Swiss building materials giant, Holcim, has officially exited Nigeria following the sale of its majority stake in Lafarge Africa Plc to Huaxin Cement, one of China’s largest producers of construction materials.
$1 Billion Transaction Completed
In a statement released on Friday, Holcim confirmed the divestment of its 83.81 percent shareholding in Lafarge Africa.
The transaction, valued at $1 billion on a 100 percent equity basis before dividend adjustments, marks the company’s complete withdrawal from the Nigerian market.
The deal was first announced in December 2024, with Friday’s confirmation bringing the process to a close.
Holcim Explains Exit Strategy
Martin Kriegner, Holcim’s Regional Head for Asia, the Middle East and Africa, said the decision aligns with the company’s strategy to channel investments into markets with stronger growth opportunities.
“We are pleased to have found in Huaxin Cement a trusted buyer committed to further developing the business in Nigeria.
At the same time, the sale proceeds give Holcim additional capacity for our growth-focused capital allocation,” he explained.
Huaxin Expands African Footprint
Huaxin Cement has been rapidly increasing its presence across Africa, with Nigeria now joining its portfolio of operations on the continent.
Industry observers say the acquisition could reshape competition in Nigeria’s cement market, where demand for building materials continues to rise.
Implications for Nigerian Economy
Analysts say Huaxin’s entry could have a significant impact on Nigeria’s cement industry, which is currently dominated by Dangote Cement and BUA Cement.
With Lafarge Africa under new ownership, competition in the sector is expected to intensify, potentially stabilising prices for builders and consumers.
There are also expectations that the takeover may bring fresh capital, modern technology, and efficiency to Lafarge operations, which could help create jobs and expand production.
However, concerns remain about regulatory oversight and how Huaxin will align its operations with Nigeria’s local content and industrial policies.
Regulatory Concerns
The deal has not been without controversy.
Earlier this year, the Securities and Exchange Commission (SEC) stated it had not received formal notice of the sale, while a Federal High Court ordered Lafarge and Huaxin to maintain the status quo pending the determination of legal issues surrounding the transaction.
Despite those concerns, Holcim confirmed on Friday that the sale had been concluded in line with its global restructuring plan.
Huaxin’s African Expansion
Huaxin Cement has been rapidly expanding its footprint across Africa, with Nigeria representing one of its most strategic acquisitions.
Industry observers say the company is positioning itself to tap into the continent’s growing demand for infrastructure and housing development.