Cement production facility representing Lafarge Africa operations after the ownership transition
Nigeria, August 31, 2025
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 has completed the divestment of its Nigerian business by selling its entire 83.81% shareholding in Lafarge Africa PLC to Huaxin Cement. The transaction carried an equity value of US$1.0 billion on a 100% basis before dividend adjustments and was reported as complete in late August 2025.
The disposal is presented as a deliberate reallocation of capital from a market described as volatile toward businesses and markets that support Holcim’s strategic shift. Proceeds are slated to support Holcim’s NextGen Growth 2030 plan, which includes a capital deployment envelope of CHF 18–22 billion (2025–2030) targeted at organic growth, value‑accretive acquisitions and shareholder returns. Key investment priorities under that plan include circular construction, low‑carbon materials and higher‑value Building Solutions.
Holcim intends to channel funds from the sale to accelerate its sustainability and industrialization priorities. Targets highlighted in the company’s plans include deriving 50% of net sales from sustainable products by 2030, achieving a 50/50 revenue split between Building Materials and Building Solutions, and recycling over 20 million tonnes of construction demolition materials by 2030 using an ECOCycle® platform.
For Lafarge Africa, the change of ownership places the business under a buyer with a growing footprint in Africa and global operating experience. Huaxin Cement currently operates more than 60 cement plants and other businesses across 12 countries, including seven plants in Africa. The new owner has stated an intention to combine local management know‑how with its own operating experience to pursue further growth in the Nigerian market.
The adjustment is consistent with a wider industry pattern of firms rebalancing exposure in certain African markets while redeploying capital into higher‑margin, sustainability‑aligned regions and products. Drivers cited for Holcim’s exit from the Nigerian market include regulatory uncertainty, currency volatility, infrastructure bottlenecks and the higher cost of doing business in some jurisdictions. The transaction follows an earlier sale of Holcim’s Zambian business to the same buyer in 2021, illustrating an ongoing recalibration of regional footprints.
Industry data cited within the sector place the construction materials market at approximately US$1.57 trillion in 2025, with a projected compound annual growth rate of 6.7% through 2032. Two of the major long‑term demand drivers are urbanization and decarbonization, factors that are shaping capital allocation and product development across the sector.
The Nigerian divestment was handled amid regulatory and legal complexity, including court actions that required maintaining the status quo while appeals proceeded. This legal backdrop reflects the practical and compliance hurdles that can arise during large cross‑border asset transfers in emerging markets.
Holcim has also highlighted that the sale enables more focused capital allocation toward markets with stronger industrialization fundamentals and clearer policy momentum on decarbonization, such as parts of Europe, Latin America and North Africa.
Beyond the divestment, Holcim has been active in targeted acquisitions and retail expansion in 2025, which the company frames as value‑accretive and aligned with its NextGen objectives. Examples of sector operational improvements and strategic moves cited by industry observers include supply‑chain redesigns delivering mid‑single‑digit cost savings, digital transformations yielding large recurring savings, deal‑driven revenue lifts in materials segments, and the adoption of Building Information Modeling to shorten project timelines and reduce costs.
Key items to follow include how Huaxin integrates Lafarge Africa’s management and staff expertise with its own processes, the speed and scale of any near‑term investment in Nigerian capacity or product lines, and how Holcim directs sale proceeds under NextGen Growth 2030. The transaction also offers an indicator of how global capital flows and ESG priorities continue to reshape ownership patterns across the construction materials industry.
Holcim sold its entire 83.81% stake in Lafarge Africa. The equity value of the transaction was US$1.0 billion on a 100% basis before dividend adjustments.
Huaxin Cement acquired the stake. The buyer operates more than 60 cement plants and other businesses in 12 countries, including several in Africa.
Holcim described the sale as a strategic reallocation of capital to fund its NextGen Growth 2030 plan and to focus on higher‑margin, sustainability‑aligned markets and products. Challenges cited in the sold market included regulatory uncertainty, currency volatility and infrastructure constraints.
Proceeds are earmarked to support Holcim’s NextGen goals, including investments in circular construction, low‑carbon materials and Building Solutions, along with organic growth, value‑accretive acquisitions and shareholder returns under a CHF 18–22 billion deployment plan for 2025–2030.
Under Huaxin’s ownership, Lafarge Africa is expected to benefit from combined local management knowledge and Huaxin’s operational experience. The change aims to support business development in Nigeria, though specifics will depend on integration plans and future investment decisions.
| Item | Detail |
|---|---|
| Seller | Holcim |
| Buyer | Huaxin Cement |
| Asset | Lafarge Africa PLC — 83.81% shareholding |
| Transaction value | US$1.0 billion (100% equity basis, pre‑dividend adjustments) |
| Primary reason for sale | Reallocate capital to sustainability‑aligned, higher‑margin markets under NextGen Growth 2030 |
| Holcim NextGen targets | CHF 18–22 billion capital deployment (2025–2030); 50% net sales from sustainable products by 2030; recycle 20M tonnes by 2030 |
| Market size & growth (sector) | Approx. US$1.57 trillion in 2025; 6.7% projected CAGR to 2032 |
| Key market risks cited | Regulatory uncertainty, currency volatility, infrastructure bottlenecks, high cost of doing business |
| Legal/regulatory note | Divestment progressed amid court orders requiring status quo during appeals |
| Buyer footprint | 60+ plants across 12 countries, including seven in Africa |
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