Holcim has completed the sale of its entire 83.81% stake in Lafarge Africa Plc to China’s Huaxin Cement, marking a clean exit from Nigeria in a deal valued at $1 billion (equity value on a 100% basis, before dividend adjustments).
“We are pleased to have found in Huaxin Cement a trusted buyer… The sale proceeds give Holcim additional capacity for our growth-focused capital allocation,” said Martin Kriegner, Holcim’s Regional Head for Asia, Middle East & Africa.
Why it matters
Industry shake-up: Nigeria’s cement market—long dominated by Dangote Cement and BUA—now has a deep-pocketed Chinese operator taking over Lafarge Africa, the country’s No. 3 producer. Analysts expect sharper competition on price, logistics, and clinker strategy as Huaxin seeks share gains.
China’s footprint expands: The move extends Huaxin’s Africa playbook of acquiring and upgrading assets across the continent, intensifying a China–Nigeria industrial corridor already visible in steel, power equipment, and rail.
Capital reallocation: For Holcim, the divestment continues a broader portfolio refocus out of selected African markets to concentrate on core geographies and higher-margin building solutions.
The essentials
Buyer: Huaxin Cement (China)
Seller: Holcim (Switzerland)
Target: 83.81% of Lafarge Africa Plc
Price guide: $1bn equity value (100% basis, pre-dividend adjustments)
Status: Closed (29 Aug 2025)
By the numbers (capacity & footprint)
Lafarge Africa operates major plants—including Ewekoro and Sagamu (Ogun), Mfamosing (Cross River) and Ashaka (Gombe)—with an estimated ~10.5Mt/yr capacity, plus a nationwide distribution network anchored in Lagos and Port Harcourt. For Huaxin, this is a platform acquisition with scale and room for operational gains (kiln efficiency, alternative fuels, and debottlenecking).
What changed since signing
Holcim first announced the agreement in December 2024, flagging an expected 2025 close subject to approvals. The transaction journey included legal tussles—notably a Federal High Court “status quo” order in June—before today’s closing update from Holcim. Neither party disclosed adjustments to the headline economics at close.
What to watch next
Pricing discipline vs. FX realities: Cement pricing in Nigeria often tracks foreign-exchange volatility and energy costs (gas, LPFO, coal). Huaxin’s playbook will likely lean on kiln efficiency, fuel switching, and logistics to defend margins without over-relying on price hikes.
Capex & ESG: Expect capex on reliability and clinker lines, plus alternative fuels (AFR) pilots to lower CO₂ intensity—areas where Chinese operators can move quickly with in-house engineering.
Competitive response: Dangote and BUA’s reactions—especially on north-east distribution (Ashaka) and south-south corridors (Mfamosing)—will signal how aggressively competition resets in key regional markets.
The bottom line
Holcim’s exit ends more than two decades of European control of Lafarge’s Nigerian assets and ushers in a new Chinese industrial owner with scale ambitions. For customers, the near-term story is operational: plant uptime, energy mix, and logistics. For investors, it is execution and FX. The strategic question is whether Huaxin can convert a legacy portfolio into a cost-competitive growth engine in Africa’s most demanding cement market.
