SWISS cement maker, Holcim Group, has revealed plans to sell off its stake in Lafarge Africa Plc in Nigeria to China’s Huaxin Cement in a deal valued at $1 billion.
The building materials giant announced this in two separate statements made available to the investing public on Sunday, December 1.
A link to one of the statements posted on the Nigerian Exchange Group website appeared to have been removed.
The transaction, expected to close in 2025 pending regulatory approval, would see Holcim selling off 83.81 per cent of its stake in Lafarge Africa.
“The sale aligns with Holcim’s strategy to streamline its portfolio and focus on high-growth regions, including the upcoming spin-off of its North American business, which remains on track for a US listing in the first half of 2025.
“The transaction is expected to close in 2025, subject to regulatory approval,” it stated.
According to Holcim, the divestment from Lafarge Africa in Nigeria aligns with its plans to spin off and list its North American business in the United States next year.
The company said it aimed to capitalise on strong demand in the North American market, driven by a housing shortage and regulatory pressures for sustainable construction materials.
It explained that the deal forms part of the company’s broader strategy to streamline its portfolio by shedding non-core assets.
The details of the deal also align with Holcim’s focus on optimising operations and expanding in markets where demand for its products, such as roofing and energy-efficient building materials, is growing rapidly.
“Caricement’s sole shareholder, Holderfin B.V, part of the Holcim Group, has reached agreement with Hainan Huaxin Pan-Africa Investment Co. Limited and Huaxin (Hong Kong) International Holdings Limited, part of Huaxin Cement, pursuant to which they will acquire respectively full ownership of Caricement and a second entity, Davis Peak Holdings Limited, which will hold the shares held currently by AICL.
“Upon completion, the Huaxin Cement entities will hold a combined 83.81 per cent shareholding in Lafarge Africa Plc. This transaction is subject to regulatory approvals and is expected to close in 2025,” one of the statements headlined ‘Holcim Group has signed an agreement with Huaxin Cement to sell its shareholding in Lafarge Africa Plc’ read.
Lafarge Africa is one of the three giant cement companies operating in Nigeria.