Swiss building materials giant Holcim AG has announced the sale of its Nigerian operations to China’s Huaxin Cement Co. in a deal valued at $1 billion. This transaction involves Holcim’s 83.81% stake in Lafarge Africa PLC and is expected to close in 2025, pending regulatory approvals.
Holcim revealed the divestment in a statement issued on Sunday, stating that the sale is part of its strategy to streamline its portfolio and concentrate on core markets. The company is focusing on strengthening its position in regions with growing demand for energy-efficient building materials and roofing products.
The sale of Lafarge Africa aligns with Holcim’s broader strategy, which includes spinning off its North American business, with plans to list it in the United States in 2025. The company aims to capitalize on the housing shortage and increasing regulatory pressures in the North American market, which are driving strong demand for its products.
This is not Holcim’s first divestment in Africa. In 2021, the company sold its 75% stake in its Zambian business to Huaxin Cement for $150 million. The deal was completed after receiving approval from Chinese and Zambian authorities. Holcim has been actively shedding non-core assets, including a business in the Indian Ocean region, as part of its focus on sustainable building solutions and growth in key markets.
Holcim CEO Jan Jenisch emphasized that the divestment strategy allows the company to continue investing in attractive growth opportunities and enhance its position as a leader in sustainable construction. He also praised Huaxin Cement as a trusted partner for advancing its operations in Zambia and highlighted the company’s commitment to becoming a global leader in innovative and sustainable building solutions.
Holcim, headquartered in Switzerland, is a leading global provider of cement, concrete, aggregates, and innovative building products. With over 70,000 employees worldwide, the company is dedicated to sustainability and recycling in its operations.
