Swiss building materials giant Holcim is set to exit the Nigerian market after agreeing to sell its 83.81% stake in Lafarge Africa Plc to China’s Huaxin Cement Ltd. for $1 billion.
In a statement on Sunday, Holcim announced, “The transaction is expected to close in 2025, subject to customary and regulatory approvals.” This move marks yet another major international exit from Nigeria’s business landscape.
Lafarge Africa, a key player in Nigeria’s construction industry and part of the Holcim Group, produces cement, aggregates, and ready-mix concrete. However, Holcim did not disclose the specific reasons for its decision to leave the Nigerian market.
Holcim’s departure is the latest in a string of multinational exits from Nigeria, driven by challenging economic conditions and shifting corporate strategies.
- May 2023: Kimberly-Clark, maker of Huggies diapers, closed its Nigerian operations after 14 years, citing a realignment of corporate priorities.
- October 2023: South African retail chain Pick n Pay announced its exit, selling its 51% stake in a Nigerian joint venture as part of its restructuring strategy.
- Pharmaceutical Sector: GlaxoSmithKline (GSK) Consumer Nigeria Plc ended operations, outsourcing its activities, while Sanofi-Aventis and Procter & Gamble also exited local production in favor of imports.
Nigeria has seen increasing difficulty in retaining global businesses due to economic pressures, regulatory hurdles, and evolving market dynamics. Holcim’s exit underscores the growing challenges multinational companies face in maintaining operations within the country.
Holcim’s $1 billion deal with Huaxin Cement Ltd. signals the strengthening presence of Chinese investments in Nigeria, as local and foreign stakeholders closely monitor the implications of this market shift.
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