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 $1.0B sale of 83.81% stake in Lafarge Africa to Huaxin Cement
What happened: Global building materials firm Holcim has finalized the divestment of its entire 83.81% shareholding in Lafarge Africa PLC to Huaxin Cement for an equity value of US$1.0 billion on a 100% basis before dividend adjustments. The transaction closes a lengthy process and frees capital that Holcim says will be redeployed under its NextGen Growth 2030 plan.
Key details
- Seller: Holcim; asset sold: 83.81% stake in Lafarge Africa PLC.
- Buyer: Huaxin Cement; transaction equity value: US$1.0 billion (100% basis, pre-dividend adjustments).
- Reported completion timing: August 2025.
- Context: Sale presented as a strategic reallocation of capital, not an exit driven solely by underperformance.
Why Holcim sold
The divestment is framed as a move to shift funds from a higher-volatility market toward higher-margin and sustainability-aligned markets and activities. Drivers cited for reallocation include regulatory uncertainty, currency volatility, infrastructure bottlenecks and the high cost of doing business in the region. Legal and regulatory complexity affected the process, including a court order to maintain the status quo during an appeal phase.
How the proceeds will be used
Holcim intends to channel the proceeds into its NextGen Growth 2030 capital deployment plan. The plan calls for deploying between CHF 18 billion and CHF 22 billion from 2025 to 2030 toward organic growth, value-accretive mergers and acquisitions, and shareholder returns. Priority areas for capital allocation include circular construction, low-carbon materials, and high-value Building Solutions. Targets tied to the strategy include achieving 50% of net sales from sustainable products by 2030, reaching a 50/50 revenue split between Building Materials and Building Solutions, and recycling over 20 million tons of demolition materials by 2030 via the ECOCycle® platform.
Buyer profile and integration outlook
Huaxin Cement operates more than 60 cement plants and other businesses in 12 countries, including seven facilities in Africa. The buyer plans to leverage existing Lafarge Africa management and staff knowledge together with Huaxin’s operational experience to develop growth plans for the Nigerian business and broaden its regional footprint. This transaction follows an earlier Zambian business sale to the same buyer in 2021, underlining a pattern of acquisitions by Huaxin in the region.
Market context
The global construction materials market was estimated at US$1.57 trillion in 2025 and is projected to grow at a compound annual growth rate of approximately 6.7% through 2032. Key growth drivers include urbanization and decarbonization. Firms in the sector are reallocating capital toward high-margin sustainable ventures, with strategic divestments used to strengthen balance sheets while aligning with environmental, social and governance metrics.
Operational and strategic trends in the sector
Industry-level improvements in digital and operational efficiency are increasingly important. Case examples referenced by analysts show supply-chain redesigns delivering multi-percent cost savings, digital transformation generating substantial recurring savings, and strategic acquisitions lifting materials revenue for some firms. Wider adoption of tools such as Building Information Modeling has been linked to significant reductions in project timeline and cost. These trends support the move toward disciplined capital management, carbon-neutral product development and greater industrialization of low-carbon building materials.
Additional corporate context
Holcim has executed multiple acquisitions and retail expansions in 2025 in its target regions, and the divestment forms part of a broader repositioning toward markets and product lines with stronger industrialization fundamentals and decarbonization momentum. Financial commentary included in market summaries earlier in 2025 indicated an earnings-per-share upgrade and other strategic actions such as portfolio spinoffs and new listings for certain units, reflecting active portfolio management.
Implications
The sale accelerates capital availability for Holcim’s sustainability and growth agenda while giving Huaxin a larger operating base in Nigeria. The deal also illustrates a wider trend of Western firms rebalancing exposure in some African markets as Chinese firms and other investors increase acquisitions in the region. For the Nigerian building‑materials market, the change of ownership could bring fresh investment and new operational approaches, while regulatory and currency risks remain factors to monitor.
FAQ
What exactly was sold?
Holcim sold its entire 83.81% shareholding in Lafarge Africa PLC to Huaxin Cement for an equity value of US$1.0 billion on a 100% basis before dividend adjustments.
Why did Holcim sell the stake?
The sale was intended to reallocate capital from a volatile market toward higher-margin, sustainability-aligned markets and activities, and to fund Holcim’s NextGen Growth 2030 priorities, including organic growth, M&A and shareholder returns.
What will Holcim do with the proceeds?
Proceeds will support the NextGen Growth 2030 capital deployment plan (CHF 18–22 billion from 2025–2030) focused on circular construction, low-carbon materials and Building Solutions, plus targets for sustainable product sales and recycling volumes.
Who is the buyer and what are their plans?
Huaxin Cement, which runs more than 60 plants across 12 countries including seven in Africa, plans to combine Lafarge Africa’s local knowledge with Huaxin experience to pursue further growth in Nigeria and the region.
Are there wider industry implications?
The transaction is part of a trend of strategic divestments and reallocations in the construction materials sector as firms prioritize sustainable, higher-margin activities and use digital and operational improvements to boost competitiveness.
Key features at a glance
| Feature | Details |
|---|---|
| Asset sold | 83.81% stake in Lafarge Africa PLC |
| Buyer | Huaxin Cement (operates 60+ plants in 12 countries; seven in Africa) |
| Sale price | US$1.0 billion (100% equity basis, pre-dividend adjustments) |
| Seller’s objective | Fund NextGen Growth 2030: CHF 18–22 billion deployment for growth, M&A, returns |
| Strategic priorities funded | Circular construction, low-carbon materials, Building Solutions; 50% net sales from sustainable products by 2030 |
| Market context | Global construction materials market ~US$1.57 trillion (2025); projected CAGR ~6.7% to 2032 |
| Notable risks cited | Regulatory uncertainty, currency volatility, infrastructure bottlenecks, high local costs |
| Relevant prior deal | Holcim sold its Zambian business to Huaxin in 2021 |
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 NY News
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