Holcim, a Swiss construction materials corporation, has consented to divest its Nigerian operations to Huaxin Cement Ltd. , a Chinese enterprise.
The arrangement, estimated at $1 billion, will result in the transfer of Holcim’s 83 percent interest in Lafarge Africa, as indicated in a statement released on Sunday.
Lafarge Africa Plc is a constituent of the Holcim Group a producer of roofing and additional housing products, including cement, construction aggregates, and ready-mix concrete.
The organization remarked that the contract has been formalized, adding that the transaction is anticipated to conclude next year.
“Holcim has formalized an agreement with Huaxin Cement Ltd to divest its complete 83. 81% ownership in Lafarge Africa Plc, at an equity valuation of $1 billion on a 100% basis,” the statement articulates.
“The transaction is projected to finalize in 2025, contingent upon standard and regulatory approvals. ”
Holcim, nonetheless, did not disclose reasons for its departure.
On May 24, Kimberly-Clark, producers of Huggies, announced its intention to cease local manufacturing and sales in Nigeria following 14 years of operation.
As per the company, the decision was influenced by its recently realigned corporate priorities globally, along with economic trends in the nation.
Pick n Pay, a South African grocery retailer, also declared intentions to exit Nigeria in October by divesting its 51 percent stake in a joint venture.
Sean Summers, chief executive officer (CEO) of Pick n Pay, noted that this decision was part of efforts to restructure beyond its domestic market.
In 2023, three pharmaceutical firms exited Nigeria.
GlaxoSmithKline (GSK) Consumer Nigeria Plc discontinued its operations and transferred its business activities to a third-party entity.
Sanofi-Aventis Nigeria Limited, a French pharmaceutical corporation, similarly ceased its direct operations in the country in November 2023.
One month later, Procter & Gamble (P&G), an American multinational consumer goods corporation, revealed intentions to shift from local manufacturing to exclusively importing its products.
