Swiss building materials giant, Holcim Group, has formally exited Nigeria after completing the sale of its majority stake in Lafarge Africa Plc to Chinese cement producer, Huaxin Cement Ltd.
Holcim confirmed on Friday that it had divested its 83.81 per cent shareholding in Lafarge Africa in a transaction worth $1 billion on a 100 per cent equity basis, before dividend adjustments.
The move comes eight months after the company first announced plans to pull out of Nigeria and hand over its operations to Huaxin, one of China’s biggest building materials manufacturers currently expanding its footprint across Africa.
Holcim’s regional head for Asia, Middle East and Africa, Martin Kriegner, said the sale would allow the Swiss group to concentrate on growth in other markets while ensuring stability in Lafarge’s Nigerian business.
“We are pleased to have found in Huaxin Cement a trusted buyer committed to further developing the business in Nigeria,” Kriegner said.
“At the same time, the sale proceeds give Holcim additional capacity for our growth-focused capital allocation. We wish Lafarge Africa Plc and Huaxin Cement continued success.”
Lafarge Africa, a household name in Nigeria’s construction sector, produces cement, aggregates, ready-mix concrete, roofing and other building products.
However, the transaction did not come without regulatory and legal hitches. Earlier in the year, the Securities and Exchange Commission (SEC) said it had not received formal notice of the deal, while the Federal High Court ordered Lafarge and Huaxin to maintain status quo pending determination of suits challenging the acquisition.
With the conclusion of the $1bn deal, Huaxin Cement now controls one of Nigeria’s oldest cement manufacturers, potentially reshaping the competitive landscape in a sector dominated by Dangote Cement and BUA Cement.
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