Nigeria, August 31, 2025
News Summary
Holcim has completed the sale of its entire 83.81% stake in Lafarge Africa PLC to Huaxin Cement for an equity value of US$1.0 billion on a 100% basis before dividend adjustments. The divestment frees capital for Holcim’s NextGen Growth 2030 strategy, earmarked for organic growth, acquisitions and sustainability priorities including low‑carbon materials and circular construction. Huaxin, with operations across multiple countries and several African plants, plans to combine its expertise with Lafarge Africa’s local management. The transaction involved regulatory oversight and reflects a wider industry shift toward sustainability‑driven, higher‑margin markets.
Holcim completes sale of 83.81% stake in Lafarge Africa for US$1.0 billion
Global building materials group Holcim has completed the sale of its entire 83.81% stake in Lafarge Africa PLC to Huaxin Cement in a deal that values the Nigerian business at US$1.0 billion on a 100% basis before dividend adjustments. The transaction closes a chapter on Holcim’s direct presence in Nigeria and frees cash for its sustainability and growth plan.
What the deal does now
The divestment provides Holcim with additional funds earmarked under its NextGen Growth 2030 strategy. That plan calls for total capital deployment of CHF 18–22 billion between 2025 and 2030 for organic growth, value-accretive acquisitions and shareholder returns. Proceeds from the Nigerian sale will be used to accelerate priorities including circular construction, low-carbon materials and higher‑value building solutions.
Who is the buyer and what they bring
Huaxin Cement, an international cement group with more than 60 plants and operations in 12 countries (including seven in Africa), is the new owner. The buyer has signalled an intention to combine its experience with Lafarge Africa’s local management and staff knowledge to pursue growth in Nigeria’s building materials market.
Local management and market view
Lafarge Africa’s chief executive described the deal as a continuation of a long company journey in Nigeria, noting resilience, collaboration and the firm’s long-term market potential. Management expects the transition and Huaxin’s investment to support further development of the business.
Why Holcim exited Nigeria
The move was framed by Holcim as a strategic reallocation of capital away from a volatile market toward higher-margin, sustainability-aligned markets and activities. Key operational headwinds cited include regulatory uncertainty, currency volatility, infrastructure bottlenecks and the high cost of doing business in the region. The sale follows a wider industry pattern of some Western firms reducing exposure in parts of Africa while other global investors increase involvement.
Legal and regulatory notes
The divestment process involved legal and regulatory complexity. At one stage, a Federal High Court order required the status quo to be maintained during an appeal, underlining the formal steps and oversight that accompanied the transaction.
How the sale fits Holcim’s strategy
Holcim positions the deal as part of a broader pivot toward sustainability-driven markets. Under NextGen Growth 2030 the company aims to have 50% of net sales come from sustainable products by 2030 and to reach a 50/50 revenue split between Building Materials and Building Solutions. Holcim also targets recycling of over 20 million tonnes of construction and demolition materials by 2030 through its ECOCycle® technology platform.
Industry context and market outlook
The global construction materials market was valued at around US$1.57 trillion in 2025 and is forecast to grow at roughly 6.7% CAGR through 2032. Urbanization and decarbonization are highlighted as principal growth drivers. Across the sector, companies are reallocating capital to higher-margin sustainable ventures and investing in operational and digital efficiency to strengthen margins and meet ESG targets.
Examples of operational gains in the sector
Corporate transformations in supply chain and digital tools are already producing measurable savings in the industry. Case studies and market examples point to single-digit percentage cost reductions from supply‑chain redesign, reversal of annual COGS increases through strategic sourcing, and tens of millions of dollars in recurring savings from digital transformation. Wider use of tools such as Building Information Modeling has also been linked to shorter project timelines and lower costs.
Broader moves and recent Holcim activity
The divestment aligns with Holcim’s recent pattern of targeted deals and portfolio reshaping. Earlier activity in 2025 included a series of value-accretive acquisitions in target regions and retail expansion in Latin America. Holcim had previously sold its Zambian business to the same buyer in 2021, reflecting a history of selective exits and partnerships.
What to watch next
Market watchers will be monitoring how Huaxin integrates Lafarge Africa’s operations, how Holcim deploys the sale proceeds under NextGen Growth 2030, and whether the move accelerates similar reallocations across the sector. Key indicators include investment announcements in low‑carbon products, progress toward recycling targets, rounds of regional acquisitions, and any further regulatory developments tied to the transaction.
FAQ
What happened?
Holcim sold its full 83.81% holding in Lafarge Africa to Huaxin Cement for an equity value of US$1.0 billion on a 100% basis before dividend adjustments.
Why did Holcim sell?
The sale was presented as a strategic reallocation of capital away from a volatile market toward higher-margin and sustainability-focused markets and activities, and to fund Holcim’s NextGen Growth 2030 priorities.
Who is the buyer?
The buyer is Huaxin Cement, an international operator with more than 60 cement plants and operations in 12 countries, including seven in Africa.
How will the sale proceeds be used?
Proceeds will support Holcim’s CHF 18–22 billion capital deployment plan for 2025–2030, financing organic growth, acquisitions and shareholder returns, and funding initiatives in circular construction and low-carbon materials.
Were there legal issues?
The transaction faced legal and regulatory complexity, including a court order to maintain the status quo during an appeal, reflecting procedural oversight of the deal.
How does this affect the Nigerian market?
The sale transfers ownership to a company with a sizable international footprint. Local management and staff are expected to remain important to operations, with planned integration and growth efforts under new ownership.
Key features at a glance
| Feature | Detail |
|---|---|
| Transaction | Sale of 83.81% stake in Lafarge Africa to Huaxin Cement |
| Price | US$1.0 billion (100% equity value before dividend adjustments) |
| Buyer | Huaxin Cement — >60 plants, operations in 12 countries (7 in Africa) |
| Seller strategy | NextGen Growth 2030: CHF 18–22 billion capital deployment (2025–2030) |
| Sustainability targets | 50% net sales from sustainable products by 2030; recycle >20M tonnes by 2030 |
| Market context | Global construction materials market ~US$1.57T (2025); 6.7% CAGR to 2032 |
| Drivers of sector moves | Urbanization, decarbonization, digital efficiency, capital reallocation |
| Notable risks cited | Regulatory uncertainty, currency volatility, infrastructure bottlenecks, high cost of business |
Deeper Dive: News & Info About This Topic
Additional Resources
- AInvest — Holcim strategic exit Nigeria: implications for capital reallocation
- Wikipedia: Holcim
- MarketScreener — Holcim divests operations in Nigeria
- Google Search: Holcim Lafarge Africa sale
- Agg-Net — Holcim close sale of Nigeria business
- Google Scholar: Holcim Lafarge Africa
- Global Cement — Holcim completes US$1bn divestment of Lafarge Africa stake to Huaxin
- Encyclopedia Britannica: Holcim
- The Africa Report — Huaxin Cement’s US$1bn Lafarge Africa acquisition hangs in the balance
- Google News: Holcim Lafarge Africa
Author: Construction FL News
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