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 majority stake in Lafarge Africa for US$1.0 billion
Holcim has completed the sale of its entire 83.81% holding in Lafarge Africa PLC to Huaxin Cement, in a deal with an equity value of US$1.0 billion on a 100% basis before dividend adjustments. The transaction closed in August 2025 and transfers control of the Nigerian operations to a buyer with an established footprint across multiple countries.
Why the deal matters
The divestment frees cash that will be redirected into Holcim’s NextGen Growth 2030 strategy, a five‑year capital plan that calls for CHF 18–22 billion of deployment between 2025 and 2030. That pool is earmarked for organic growth, selective acquisitions and shareholder returns, with a strategic bias toward higher‑margin, sustainability‑aligned markets and product lines.
How Holcim plans to use proceeds
Proceeds from the sale will help fund priorities tied to circular construction, low‑carbon materials and building solutions. Targets under the NextGen plan include deriving 50% of net sales from sustainable products by 2030 and achieving a 50/50 revenue split between Building Materials and Building Solutions. The company also plans major recycling expansion through its ECOCycle® platform, aiming to process over 20 million tonnes of construction and demolition material by 2030.
Buyer profile and local transition
The buyer operates more than 60 cement plants and related businesses across 12 countries, including operations in seven African nations. The new owner intends to combine its own experience with Lafarge Africa’s local management and workforce knowledge to develop growth plans for the Nigerian business. Lafarge Africa’s leadership framed the change of ownership as an opportunity to continue expanding with fresh investment and international expertise.
Reasons behind Holcim’s exit from Nigeria
Management presented the sale as a reallocation from a volatile market toward markets with stronger industrialization and decarbonization momentum. Specific drivers cited for the move included regulatory uncertainty, currency volatility, infrastructure bottlenecks and a high cost of doing business. The transaction follows a pattern of Western firms rebalancing exposure in some African markets, while regional and Chinese groups have become more active buyers.
Legal and operational context
The Nigerian divestment involved legal and regulatory complexity, including a federal court order that required maintaining the status quo while an appeal was heard. This was one of several factors that lengthened the deal process. Holcim previously divested a Zambian operation to the same buyer in 2021, illustrating an ongoing reshaping of international portfolios.
Sector outlook and strategic trends
The broader construction materials market was estimated at about US$1.57 trillion in 2025 and is projected to grow at roughly 6.7% CAGR to 2032, driven by continued urbanization and efforts to decarbonize the built environment. Industry participants are increasingly reallocating capital to sustainable, higher‑margin ventures while pursuing digital and operational efficiency gains to protect margins in a competitive market.
Operational and digital efficiency examples
- A major supply‑chain redesign delivered about 6.1% cost savings over three years in one case study.
- Strategic sourcing and process changes have been used to reverse typical annual increases in cost of goods sold by a few percentage points.
- A digital transformation program was reported to have generated recurring savings of roughly US$100 million for a large regional player.
- Project digital tools such as building information modeling were cited as ways to reduce project timelines and costs by around 20% and 15%, respectively.
How this fits Holcim’s recent activity
The Nigerian sale sits alongside other moves by the seller to refocus on targeted regions and product lines. In 2025 the company completed a series of value‑accretive purchases in Europe and expanded its retail network in Latin America. Management framed disciplined capital allocation, carbon‑neutral product development and digital efficiency as core to gaining a long‑term edge.
What to watch next
Observers will be watching how the new owner integrates Lafarge Africa’s operations and whether Holcim’s redirected capital accelerates its sustainable products and recycling targets. Market indicators such as adjusted earnings per share forecasts, continued deal activity in target regions and progress against the NextGen deployment plan will be key measures of whether the reallocation meets strategic goals.
FAQ
What was sold and for how much?
The sale covered Holcim’s full 83.81% stake in Lafarge Africa with a transaction equity value of US$1.0 billion on a 100% basis before dividend adjustments.
Who bought Lafarge Africa?
The buyer is a large cement and building materials group with operations in more than 12 countries, including several in Africa, and over 60 plants and related businesses worldwide.
Why did Holcim sell?
The sale was presented as a strategic reallocation of capital away from a volatile market because of regulatory and currency risks, infrastructure issues, and high operating costs, freeing funds to invest in higher‑margin, sustainability‑focused areas.
How will Holcim use the proceeds?
Proceeds will be deployed under the NextGen Growth 2030 plan, which targets CHF 18–22 billion between 2025 and 2030 for organic growth, acquisitions and shareholder returns, and supports circular construction and low‑carbon product goals.
What are Holcim’s sustainability targets?
Key targets include deriving half of net sales from sustainable products by 2030, achieving a 50/50 revenue split between Building Materials and Building Solutions, and recycling over 20 million tonnes of demolition material by 2030 through ECOCycle®.
Were there legal issues?
The transaction faced legal and regulatory complexity including a federal court order to maintain the status quo while legal appeals were resolved.
Key features at a glance
| Feature | Detail |
|---|---|
| Seller | Holcim |
| Buyer | Huaxin Cement (large international cement group) |
| Stake sold | 83.81% |
| Transaction value | US$1.0 billion (100% basis, before dividend adjustments) |
| Completion date | August 2025 |
| Use of proceeds | NextGen Growth 2030 capital deployment for growth, M&A and shareholder returns |
| NextGen targets | CHF 18–22 billion (2025–2030); 50% net sales from sustainable products by 2030 |
| Buyer footprint | More than 60 plants in 12 countries, including seven in Africa |
| Key exit drivers | Regulatory uncertainty, currency volatility, infrastructure bottlenecks, high costs |
| Market context | Construction materials market ~US$1.57T (2025), projected ~6.7% CAGR to 2032 |
| ESG rating | AA (MSCI ESG rating) |
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 CA News
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