Swiss cement giant Holcim announced on Sunday that it will sell its nearly 84% stake in Lafarge Africa (WAPCO) to China’s Huaxin Cement in a deal valued at $1 billion. This transaction is part of Holcim’s strategy to streamline its portfolio and focus on high-growth regions. The sale aligns with Holcim’s broader plan to concentrate on core markets, including its upcoming spin-off of its North American business, which is scheduled for a U.S. listing in the first half of 2025.
The deal is expected to close in 2025, pending regulatory approval, though Holcim did not specify the exact reasons behind this sale.
This move follows Holcim’s previous decisions to divest from its operations in Uganda and Tanzania in November 2023, part of a broader strategy to reinforce its position as a leader in innovative and sustainable building solutions. The sale of its Nigerian business is the latest in a series of African acquisitions by Huaxin Cement. In 2021, Huaxin acquired a 75% stake in Lafarge Zambia and all of Lafarge Cement Malawi. Additionally, in 2023, it acquired South Africa’s Natal Portland Cement Company.
Holcim continues to focus on sustainable growth, prioritizing higher-margin products and strategic infrastructure investments. In line with its sustainability goals, Holcim also invested in Sublime Systems, a U.S.-based startup focused on low-carbon cement solutions.
Despite the sale, Holcim reported a slight increase in its recurring operating profit for Q3 2023, reaching 1.67 billion Swiss francs ($1.90 billion), surpassing expectations.
