Holcim, the Swiss building materials giant, has announced its decision to sell its Nigerian business to Huaxin Cement Ltd., a Chinese firm, in a deal valued at $1 billion.
The agreement, which includes Holcim’s 83.81% stake in Lafarge Africa Plc, marks another major exit from the Nigerian market by an international firm.
“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 member of the Holcim Group, is a key player in Nigeria’s construction industry, producing cement, construction aggregates, and ready-mix concrete. Holcim did not provide reasons for its decision to exit the Nigerian market.
This announcement follows a wave of departures by multinational firms from Nigeria, citing challenging economic conditions and shifting corporate strategies. On May 24, Kimberly-Clark, the maker of Huggies diapers, announced its withdrawal from the Nigerian market, ending 14 years of local manufacturing and sales. The company attributed the decision to refocused corporate priorities and economic trends in the country.
Similarly, in October, South African grocery retailer Pick n Pay revealed plans to exit Nigeria by selling its 51% stake in a joint venture. CEO Sean Summers explained that the move was part of a broader restructuring strategy outside its home market.
The pharmaceutical sector has also seen significant exits in 2023. GlaxoSmithKline (GSK) Consumer Nigeria Plc ceased operations and outsourced its business activities to a third party. Sanofi-Aventis Nigeria Limited, a French pharmaceutical company, halted its direct operations in November 2023, followed by Procter & Gamble (P&G), which transitioned from local production to importing its products.