By: Bayero Ade
Swiss multinational Holcim has announced its decision to exit Nigeria after more than 60 years of operation. The company plans to sell its 83.8% stake in Lafarge Africa Plc to China’s Huaxin Cement in a deal valued at $1 billion.
The transaction, which is subject to regulatory approval, is expected to be completed by 2025. Holcim’s move is in line with its global strategy to streamline operations, focus on high-growth markets, and prioritize sustainable initiatives. This follows a broader trend of divestment from less strategic markets, including the sale of its majority stake in Zambia to Huaxin Cement in 2021.
Lafarge Africa, previously known as the West African Portland Cement Company (WAPCO), has been a major player in Nigeria’s building materials sector since its establishment in 1959. The company operates plants in Ogun, Cross River, and Gombe states, with an annual production capacity of 10.5 million tons. Lafarge is known for its popular cement brands, including Elephant Cement and Supaset.
Huaxin Cement, a leading Chinese manufacturer with a 116-year history, sees this acquisition as an opportunity to strengthen its footprint in Africa, particularly in Nigeria, one of the continent’s largest cement markets.
For Holcim, this exit is part of a strategic shift to focus on high-margin products and sustainable innovations, such as low-carbon cement, aligning with the company’s commitment to global sustainability and growth in key markets.
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