September 1, 2025/CSL Research
Holcim Group, the Swiss cement giant and majority shareholder in Lafarge Africa Plc, has completed the divestment of its entire 83.81% stake in Lafarge Africa to Huaxin Cement Co., Ltd., a leading Chinese cement and building materials manufacturer headquartered in Shanghai. The transaction, first announced in December 2024, was finalized last week after securing all required regulatory approvals. The deal, valued at approximately US$773.86 million on a 100% equity basis (after dividend adjustments), translates to a transaction price of around US$0.05 per share. Using the current exchange rate of ₦1,531.57/US$ this equates to roughly ₦73.62 per share.
The transaction marks Holcim’s complete exit from the Nigerian market. This divestment aligns with Holcim’s global repositioning strategy, which focuses on streamlining its portfolio and redirecting capital toward higher-growth, higher-margin markets. The company is placing increasing emphasis on sustainable building solutions and green infrastructure, while scaling back its presence in select emerging markets.
Following the completion of the deal, Huaxin Cement becomes the new majority shareholder of Lafarge Africa Plc, which is expected to remain listed on the Nigerian Exchange Group (NGX), as highlighted by the company’s management. In accordance with Nigerian securities laws, Huaxin plans to initiate a mandatory takeover offer (MTO) for the remaining minority shares, subject to regulatory approvals. This provides existing minority shareholders the option to exit the stock if they do not wish to continue under the new ownership structure.
Should a significant number of minority shareholders tender their shares, Huaxin could increase its ownership further. However, Lafarge Africa will be required to maintain the minimum free float threshold stipulated by the NGX to remain publicly listed. If the free float falls below this threshold, the company may either take corrective measures to restore compliance or opt for voluntary delisting.
Huaxin’s acquisition appears strategically well-placed, as it targets a company with strong operational and financial performance. In the first half of 2025, Lafarge Africa reported ₦516.98 billion in Revenue, representing a 74.9% y/y increase. Pre-tax Profit also surged by 328.3% y/y to ₦199.74 billion, reflecting robust cost efficiency and disciplined execution.
Despite having a lower installed capacity compared to some industry peers, Lafarge Africa stood out as the only major cement producer in Nigeria to achieve volume growth during the period. This highlights the company’s operational resilience, market relevance, and effective competitive strategy, even in a challenging macroeconomic environment.
Looking ahead, the acquisition provides Huaxin Cement with a strong platform to expand its presence across Sub-Saharan Africa. For Lafarge Africa, the deal is expected to support an expansion of production capacity, enhancing competitiveness—particularly given the company’s deleveraged balance sheet. Lafarge Africa is well positioned to leverage Huaxin’s technical expertise and operational capabilities to drive greater efficiency and unlock new growth opportunities in Nigeria’s evolving construction and infrastructure sector.
In summary, the transaction not only strengthens Huaxin’s global footprint but also positions Lafarge Africa for long-term value creation through potential capacity expansion, operational synergies, and market share growth.
Click here to download full report: CSL Nigeria Daily – 01 September 2025 – Cement .pdf
