Swiss cement giant Holcim has announced its decision to exit the Nigerian market by selling its 84% stake in Lafarge Africa to China's Huaxin Cement for $1 billion. The deal, confirmed on Sunday, aligns with Holcim's strategy to streamline its portfolio and focus on high-growth regions.
Holcim is also preparing to spin off its North American business, with plans for a U.S. listing in the first half of 2025.
This move underscores the company's broader efforts to reallocate resources to regions with higher growth potential.
The transaction is expected to close in 2025, subject to regulatory approval, Holcim's statement said, without elaborating on the reason for this particular sale.
In November last year Holcim said it had signed deals to sell its businesses in Uganda and Tanzania, saying they "advance our strategy to consolidate our leadership in core markets as the global leader in innovative and sustainable building solutions".
The deal is the latest in a series African acquisitions by Huaxin Cement.
In 2021 it said it had agreed to buy two businesses that were part of Lafarge, which merged with Holcim in 2015: a 75% stake in Lafarge Zambia and all of Lafarge Cement Malawi. It also announced last year that it was buying South Africa's Natal Portland Cement Company.
Holcim has focused on sustainable growth in its core markets, higher-margin products and strategic infrastructure investments. It is also seeking to improve its environmental credentials and in September took a stake in Sublime Systems, a U.S. tech start-up working on low-carbon cement.