Swiss cement and building materials giant Holcim has announced its decision to exit Nigeria as part of its global strategy to streamline operations and prioritize high-growth regions and sustainable initiatives. The company revealed plans to sell its 83.8% stake in Lafarge Africa Plc to China’s Huaxin Cement for $1 billion.

In an official statement, Holcim noted that it had signed an agreement with Huaxin Cement Ltd to transfer its entire shareholding in Lafarge Africa at an equity value of $1 billion, based on a 100% valuation. The transaction is expected to be finalized in 2025, pending regulatory and customary approvals.

This strategic move aligns with Holcim’s focus on enhancing profitability through higher-margin products, strategic infrastructure development, and investments in green technologies. Recently, Holcim invested in low-carbon cement in collaboration with US-based Sublime Systems, reflecting its commitment to sustainability.

Holcim’s exit from Nigeria follows its earlier divestment of its majority stake in its Zambian operations in 2021, also sold to Huaxin Cement. This trend highlights a shift in Nigeria’s cement market, now led by prominent local companies such as Dangote Group and BUA Cement.

Lafarge Africa, established in 1959, operates four plants across Nigeria with a production capacity of 10.5 million tons annually. It has been a key player in promoting green growth and decarbonization within the building materials sector.

Holcim, a global leader in innovative building solutions, reported CHF 27 billion in sales for 2023 and employs over 63,000 individuals worldwide. Huaxin Cement, the acquiring company, brings over a century of experience in the cement industry and operates more than 300 branches globally, further strengthening its international footprint with this acquisition.