Holcim Lafarge sale ups Chinese ownership of African cement market

3 Dec 2024

Swiss cement maker Holcim will exit its Nigerian business through the sale of its almost 84% stake in Lafarge Africa to China's Huaxin Cement in a $1bn deal, it said on Sunday. The deal aligns with Holcim's strategy to streamline its portfolio and focus on high-growth regions, including the coming spin-off of its North American business, which remains on track for a US listing in the first half of 2025.

Rail carriages are pictured at the Siggenthal plant of cement maker Holcim in Wurenlingen near Zurich, Switzerland. Source: Reuters/Denis Balibouse

The transaction is expected to close in 2025, subject to regulatory approval, Holcim's statement said, without elaborating on the reason for this particular sale.

In November last year Holcim said it had signed deals to sell its businesses in Uganda and Tanzania, saying they "advance our strategy to consolidate our leadership in core markets as the global leader in innovative and sustainable building solutions".

The deal is the latest in a series of African acquisitions by Huaxin Cement.

In 2021 it said it had agreed to buy two businesses that were part of Lafarge, which merged with Holcim in 2015: a 75% stake in Lafarge Zambia and all of Lafarge Cement Malawi.

It also announced last year that it was buying South Africa's Natal Portland Cement Company.

Holcim has focused on sustainable growth in its core markets, higher-margin products and strategic infrastructure investments.

It is also seeking to improve its environmental credentials and in September took a stake in Sublime Systems, a US tech start-up working on low-carbon cement.

In October Holcim reported a slightly better than expected recurring operating profit of $1.9bn for the third quarter.

Source: Reuters

Reuters, the news and media division of Thomson Reuters, is the world's largest multimedia news provider, reaching billions of people worldwide every day.

Go to: https://www.reuters.com/