Holcim -the parent company of Lafarge Africa Plc is set to exit Nigeria cement industry ,blaming harsh economy.
Reuters reported that Holcim, which owned an 84 per cent stake in Lafarge Africa (WAPCO.LG) said it has now sold its stake to China’s Huaxin Cement for $1 billion.
According to Holcim, the deal, projected to be sealed by 2025, is subject to regulatory approvals.
The transaction is geared towards streamlining its portfolio by targeting high-growth regions like North America, with a U.S listing in 2025.
The company is said to be focused on sustainable growth in its core markets, higher-margin products and strategic infrastructure investments.
The development comes after the company, in September, acquired a stake in Sublime Systems, a U.S. tech start-up dealing in low-carbon cement, as it plans to improve its environmental credentials.
It’s also coming after the company, in October, reported a slightly better than expected after making a recurring operating profit of 1.67 billion Swiss francs ($1.90 billion) for the third quarter of 2024.
Other companies that have dumped Nigeria in 2024 include Pick n Pay, Microsoft Nigeria, Total Energies Nigeria, PZ Cussons Nigeria PLC, Kimberly-Clark Nigeria, and Diageo PLC, while a few others have left in 2023.