Swiss cement maker sells $1bn stake in Lafarge

Swiss cement maker Holcim will exit its Nigerian enterprise via the sale of its practically 84 per cent stake in Lafarge Africa to China’s Huaxin Cement, the agency introduced in an announcement on Sunday.

The sale value was $1bn for a 100 per cent stake.

It acknowledged, “The sale aligns with Holcim’s technique to streamline its portfolio and concentrate on high-growth areas, together with the upcoming spin-off of its North American enterprise, which stays on monitor for a US itemizing within the first half of 2025.

“The transaction is anticipated to shut in 2025, topic to regulatory approval, based on Holcim’s assertion, which didn’t present additional particulars on the explanation for this particular sale.”

In November 2023, Holcim mentioned it had signed offers to promote its companies in Uganda and Tanzania, additional advancing its technique to consolidate management in core markets as the worldwide chief in progressive and sustainable constructing options.

Based on Reuters, the deal marks the most recent in a collection of African acquisitions by Huaxin Cement.

In 2021, Huaxin Cement introduced it had agreed to purchase two companies that had been a part of Lafarge, which merged with Holcim in 2015: a 75 per cent stake in Lafarge Zambia and all of Lafarge Cement Malawi.

Final yr, it additionally introduced the acquisition of South Africa’s Natal Portland Cement Firm.

Holcim had been specializing in sustainable development in its core markets, higher-margin merchandise, and strategic infrastructure investments.

The corporate can also be working to reinforce its environmental credentials, having taken a stake in Chic Techniques, a U.S. tech start-up centered on low-carbon cement.

In October, Holcim reported a barely better-than-expected recurring working revenue of 1.67 bn Swiss francs ($1.90 bn) for the third quarter.