Stagnant Economy Forces Lafarge Partner Holcim Exit Nigeria
Holcim, which owned 84 per cent stake in Lafarge Africa (WAPCO.LG), said it has now sold its stake to China’s Huaxin Cement for $1 billion over unfavourable economic conditions under the Bola Tinubu administration.
In 18 months since the election of Bola Ahmed Tinubu a number of foreign companies including those in the oil and gas sector have exited Nigeria
Domestic manufacturing companies as well as service providers have either indicated leaving Nigeria or have since closed shop under harsh economic conditions.
Roll call of 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 after the president assumed office.
According to Reuters, Holcim sealed the deal with China’s Huaxin Cement for $1 billion commencing 2025. It is however awaiting regulatory approval from the Nigerian authorities.
The transaction is geared towards streamlining its portfolio by targeting high-growth regions like North America, which will, in 2025, the U.S.
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.