Swiss building materials leader Holcim has announced the sale of its Nigerian business, including its 83.81% stake in Lafarge Africa Plc, to China’s Huaxin Cement Ltd. The deal, valued at $1 billion, signals another major international departure from Nigeria’s economic landscape.
In a statement released on Sunday, Holcim confirmed the agreement, highlighting that the transaction is subject to regulatory approvals and is expected to finalize by 2025. “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 stated.
Lafarge Africa, a subsidiary of the Holcim Group, is a significant player in Nigeria’s construction industry, specializing in cement, construction aggregates, and ready-mix concrete. Despite its strategic position in the Nigerian market, Holcim did not elaborate on its reasons for exiting.
Holcim’s decision aligns with a growing trend of multinational companies scaling back or exiting the Nigerian market due to economic challenges and evolving corporate priorities. Earlier this year, Kimberly-Clark, the maker of Huggies diapers, announced its withdrawal from Nigeria after 14 years of local manufacturing, citing shifting corporate strategies.
Similarly, South African retailer Pick n Pay disclosed in October that it would sell its 51% stake in a Nigerian joint venture, part of a broader effort to focus on its domestic operations.
The pharmaceutical industry has also seen a wave of withdrawals in 2023. GlaxoSmithKline (GSK) Consumer Nigeria Plc ceased operations, opting to outsource its activities to a third party. French pharmaceutical giant Sanofi-Aventis Nigeria Limited followed suit, halting direct operations in November. Additionally, Procter & Gamble (P&G) shifted from local manufacturing to importing its products.
These exits highlight the difficulties multinational companies face in Nigeria, including economic uncertainties and operational challenges. Analysts suggest that while these moves reflect global restructuring trends, they also underscore the need for reforms to attract and retain foreign investment in the Nigerian market.
Holcim’s departure raises questions about the future of Lafarge Africa Plc under its new Chinese ownership and the broader implications for Nigeria’s construction sector.
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