Holcim to Leave Nigeria Following Sale of 83% Stake in Lafarge to Chinese Company

Holcim, the Swiss building materials company, has confirmed its decision to sell its Nigerian operations to Huaxin Cement Ltd., a Chinese firm, in a deal worth $1 billion.

The agreement involves Holcim’s 83.81% stake in Lafarge Africa Plc, representing a significant exit from the Nigerian market by a major international company.

“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 $1 billion on a 100% basis,” the company said in a statement on Sunday.

“The transaction is expected to close in 2025, subject to customary and regulatory approvals.”

Lafarge Africa, a subsidiary of the Holcim Group, plays a significant role in Nigeria’s construction industry, producing cement, aggregates, and ready-mix concrete. However, Holcim has not disclosed the reasons behind its decision to exit the Nigerian market.

This move follows a trend of multinational companies leaving Nigeria, often due to challenging economic conditions and changing corporate strategies.

For instance, on May 24, Kimberly-Clark, the maker of Huggies diapers, announced its exit from Nigeria after 14 years of local manufacturing and sales. The company attributed its decision to a shift in corporate priorities and broader economic factors in the country.

Similarly, in October, South African grocery chain Pick n Pay announced plans to exit Nigeria by selling its 51% stake in a joint venture. CEO Sean Summers stated that the decision was part of a broader restructuring strategy that focused on markets outside of South Africa.

The pharmaceutical sector also witnessed notable exits in 2023. GlaxoSmithKline (GSK) Consumer Nigeria Plc ceased its operations and outsourced its activities to a third party.

In November 2023, French pharmaceutical company Sanofi-Aventis Nigeria Limited also halted its direct operations in the country. Following suit, Procter & Gamble (P&G) shifted from local production to importing its products.