₦airaland Forum

Swiss cement maker Holcim (HOLN.S), opens new tab will exit its Nigerian business through the sale of its almost 84% stake in Lafarge Africa (WAPCO.LG), opens new tab to China's Huaxin Cement (600801.SS), opens new tab in a $1 billion deal, it said on Sunday.

The deal aligns with Holcim's strategy to streamline its portfolio and focus on high-growth regions, including the coming spin-off of its North American business, which remains on track for a U.S. listing in the first half of 2025.

The transaction is expected to close in 2025, subject to regulatory approval, Holcim's statement said, without elaborating on the reason for this particular sale.

In November last year Holcim said it had signed deals to sell its businesses in Uganda and Tanzania, saying they "advance our strategy to consolidate our leadership in core markets as the global leader in innovative and sustainable building solutions".
The deal is the latest in a series African acquisitions by Huaxin Cement.

In 2021 it said it had agreed to buy two businesses that were part of Lafarge, which merged with Holcim in 2015: a 75% stake in Lafarge Zambia and all of Lafarge Cement Malawi. It also announced last year that it was buying South Africa's Natal Portland Cement Company.

Holcim has focused on sustainable growth in its core markets, higher-margin products and strategic infrastructure investments. It is also seeking to improve its environmental credentials and in September took a stake in Sublime Systems, a U.S. tech start-up working on low-carbon cement.
In October Holcim reported a slightly better than expected recurring operating profit of 1.67 billion Swiss francs ($1.90 billion) for the third quarter.

tony0806:
Nigeria has happened to them

checkmatez:
Leaving Nigeria

Larfarge staff welfare is about to take a dip, we all know what the Chinese, Lebanese and Indian run companies can do interms of welfare compounded with a Nigerian HR manager

Even basic PPE kits workers fit no see

You sabi the format. Once a Western firm exits and sells its stake to Chinese or Indian firm, the entire business model dynamics changes. Those guys are adept at working in a challenging markets like Nigeria. They would import their own unfriendly labour policies with a mean and ass-licking Nigeria HR to drive the obnoxious HR policies. But give it to them, they can turnaround a moribund firm to a profitable one but at a great costs to staff, customers and the environment.

PepeXKermit:
What you should know is that they are leaving the nigerian market and now they have sold it to a chinese cement company who will also come with a construction company to try to get govt contracts to cover their overhead

Bwanasaraw:
I don't blame them. Doing business in Nigeria is no longer profitable/lucrative like before, sometimes you need full Hilux of police to guard your expatriates 24hrs. Even banks are complaining about price of diesel

patrickcollins:
Tinubu or T.Pain happened to them

olaremint:
Just not intelligent are you, so it was Tinubu that made them sell in Uganda, Tanzania and South Africa

Lifestone:
What's your point. They sold in Tanzania and Uganda. The Chinese Company bought all these stakes and acquired Cement company in South Africa.
Nothing new, it's about reevaluating your portfolio for optimality

haybhi1:
Make I just get enough money to buy am. Nothing is impossible though. The owners no get two heads.

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checkmatez:
Leaving Nigeria

Larfarge staff welfare is about to take a dip, we all know what the Chinese, Lebanese and Indian run companies can do interms of welfare compounded with a Nigerian HR manager

Even basic PPE kits workers fit no see

VanuatuWycombe:
Oyibos are already divesting from this type of cement. The topic is even on a front burner in all climate-related conferences.

They are moving to low-carbon footprint cements which Africans can’t buy because they are expensive. That’s why Lafarge is buying a new startup company in low carbon cement which are already in use in America.

My Nairaland, everything we read shouldn’t be viewed 100% from political angle. This is a kind of decision you must make as senior oga who knows road, in a company.

When baba Adebola Adegunwa was with Agfa as a mega dealer in Africa, he quickly saw the advent of phones with camera and knew that would disrupt photo printing businesses which his other colleagues in the trade didn’t see.
He quickly divested from the business by selling all his machines to his colleagues who felt he didn’t know what he was doing and he ventured into (Bigi) sausage roll to compete with UAC (Gala).
Later on he added beverage (Bigi)

As senior execs of this type of company, you need to think 10 years ahead and be among the first to make it to market on new technologies and innovations.

That’s why a Chinese company is coming to buy all Lafarge Africa. No western cement company can buy Lafarge Africa because they all sign to reduce their carbon footprint. We can all try to read their ESG Report in their annual reports.

Lafarge is doing pretty fine in Africa.

Lifestone:
What's your point. They sold in Tanzania and Uganda. The Chinese Company bought all these stakes and acquired Cement company in South Africa.
Nothing new, it's about reevaluating your portfolio for optimality

patrickcollins:
Tinubu or T.Pain happened to them