Holcim, the Swiss cement and building materials manufacturer, has announced its exit from Nigeria.
The company said its strategy to streamline operations and focus on high-growth regions and sustainability is the reason for its decision.
Consequently, the company plans to sell its 83.8 percent stake in Lafarge Africa Plc to China’s Huaxin Cement for $ 1 billion.
According to Holcim, it signed an agreement with Huaxin Cement Ltd to sell its entire 83.81 percent shareholding in Lafarge Africa PLC, at an equity value of $ 1 billion on a 100 percent basis.
The company noted that the transaction is expected to close in 2025, following customary and regulatory approvals.
Holcim stated that it aims to prioritise higher-margin products, strategic infrastructure investments, and green technologies as it relocates.
It highlighted its recent investment in low-carbon cement through a partnership with US-based Sublime Systems as part of its future business plans.
Holcim’s exit from Nigeria is coming after its 2021 disposal of majority stake in Zambian operations, also to Huaxin Cement.
The move also reflects Nigeria’s evolving cement market, now dominated by local players like Dangote Group and BUA Cement.
Lafarge Africa, that has been in operation since 1959, has four plants across Nigeria and a production capacity of 10.5 million tons per annum.
The company has been at the forefront of green growth and decarbonisation in building materials.
Holcim, a global leader in building solutions, reported CHF 27 billion in sales in 2023 and employs over 63,000 staff worldwide.
Meanwhile, Huaxin Cement, its buyer, has over a century of experience in the cement industry and operates across more than 300 branches globally.
This recent development is coming following reports of the sliding economy in the country as many companies fold up.
Many of the affected countries had complained of harsh business environment in the country, a situation they argued has been impacting profits negatively.
