Holcim AG, a Swiss building materials company and the majority shareholder in Bamburi Cement, has signed an agreement to sell its entire Nigerian business to Chinese firm Huaxin Cement for US$1 billion.
- In a transaction expected to close in 2025, Holcim agreed to exit Nigeria through the sale of its 83.8% shareholding in Lafarge Africa Plc to the Chinese Cement company, subject to regulatory approvals.
- The divestment from Nigeria is in line with Holcim’s broader strategy to streamline operations, focus on more profitable markets.
In the final quarter of 2021, Huaxin Cement completed the acquisition of Lafarge Cement Malawi and subsequently acquired a 75% stake in Lafarge Zambia for US$150 million.
Holcim has been restructuring its global business since it acquired LaFarge in 2015, beginning with the sale of units in Cote d’Ivoire, Morocco, Guinea and Cameroon in 2016. In June 2022, the 76.45% stake Lafarge Zimbabwe was acquired by Fossil Mines at US$ 29.7 million.
In just three years (2019-2021), Holci made over US$3.1bn in divestments from the Indian Ocean cluster. It has also divested from Brazil, India, Russia, and other countries as part of its strategy to keep its books cash rich to facilitate acquisitions in other markets and sectors.
“These divestments advance our strategy to consolidate our leadership in core markets as the global leader in innovative and sustainable building solutions,” Martin Kriegner, Regional Head Asia, Middle East & Africa said earlier.
Holcim’s Retreat from Africa
In total, the company has made 97 acquisitions, and sold more than 20 of its subsidiaries, since 2018. It is also in the process of restructuring its North American business by separating the capital structure so it can be listed in the United States.
In November 2023, Holcim agreed to sell its businesses in Uganda and Tanzania. The company sold Hima Cement Ltd in Uganda to the Sarrai Group for an enterprise value of USD 120 million. In Tanzania, Holcim divested its 65% stake in Mbeya Cement Company Ltd to Amsons Group.
The Ugandan sale was finalized earlier this year with Holcim signing an irrevocable agreement to sell off its Kenyan business. The conglomerate is also in the process of selling Bamburi Cement in a deal that has attracted two bids, one from Amsons Group and another from Savannah Clinker.
With the Nigerian sale in play, Holcim now has footing in Egypt and Algeria from a total of 15 African countries in 2015. The company’s biggest markets in terms of grinding capacity in Africa are Egypt and Nigeria.
