Swiss building materials giant, Holcim AG has announced the sale of its Nigerian business 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 it is expected to close in 2025, pending regulatory approvals.
This was disclosed in a statement issued by Holcim on Sunday.
The company is divesting its stake in Lafarge Africa as part of its strategy to streamline its portfolio and focus on 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,” the company stated.
Details of the deal
The divestment in Nigeria aligns with Holcim’s plans to spin off and list its North American business in the US next year.
- The company aims to capitalize on strong demand in the North American market driven by a housing shortage and regulatory pressures for sustainable construction materials.
- The deal forms part of the company’s broader strategy to streamline its portfolio by shedding non-core assets.
- The sale is in line with Holcim’s focus on optimizing operations and expanding in markets where demand for its products, such as roofing and energy-efficient building materials, is growing rapidly.
Previous disposals in Africa
This sale is not Holcim’s first divestment on the continent. In 2021, Holcim closed the sale of its business in Zambia, representing a 75% stake in the company, to the Chinese cement group Huaxin for an enterprise value of USD 150 million for 100% of the company.
The deal was closed following approvals from Chinese and Zambian authorities.
Holcim’s CEO, Jan Jenisch, described the divestment as part of the company’s transformation towards becoming a leader in sustainable building solutions, enabling investments in growth opportunities, and praised Huaxin as a trusted partner suited to advancing the Zambian business.
“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 and we see the company as an ideal owner to further develop the business in Zambia.”
The sale of Holcim’s business in Zambia follows the divestment of the Indian Ocean cluster, which was closed at the end of October 2021. Since 2019 the company has achieved over USD 3.1 billion in divestments.
What you should know
- Holcim AG is a Swiss-based global leader in building materials and sustainable construction solutions.
- The company specializes in cement, concrete, aggregates, and innovative building products, with a strong focus on sustainability and recycling.
- The company has over 70,000 employees worldwide.