Chinese Firm Acquires Lafarge Africa in $1 Billion Deal
Swiss building materials giant Holcim has announced the sale of its Nigerian business, Lafarge Africa Plc, to Chinese company Huaxin Cement Ltd. The deal, valued at $1 billion, involves Holcim’s 83.81 percent stake in Lafarge Africa.
In a statement released on Sunday, Holcim disclosed that the agreement has been signed and is expected to close in 2025, pending regulatory approvals.
“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.
Lafarge Africa is part of the Holcim Group, which specializes in construction products such as cement, roofing, aggregates, and ready-mix concrete.
This marks another major foreign company exiting Nigeria in recent months. On May 24, Kimberly-Clark, the maker of Huggies diapers, announced plans to end local manufacturing and sales operations after 14 years, citing “recently refocused corporate priorities globally as well as economic trends in the country.”
Since 2023, at least eight big multinational companies have exited the country, citing various reasons, including unsustainable economic conditions.
After 51 years of operations in Nigeria, GlaxoSmithKline exited the country in August 2023, deciding to transition into a third-party direct distribution model for its pharmaceutical products in Nigeria.
In October, South African grocery chain Pick n Pay also announced plans to leave Nigeria. The company intends to sell its 51 percent stake in its Nigerian joint venture as part of a broader restructuring outside its home market.
Other multinationals that have left Nigeria within the last year include; Procter & Gamble (P&G), Sanofi, Jumia Food, among others.
The back-to-back exits of foreign firms from Nigeria highlight growing economic challenges in the country, including inflation, foreign exchange instability, and infrastructure deficits. These issues continue to pose hurdles for multinational businesses operating in the region.
