Nigeria, August 31, 2025
News Summary
Holcim has completed the sale of its entire 83.81% stake in Lafarge Africa PLC to Huaxin Cement for an equity value of US$1.0 billion on a 100% basis before dividend adjustments. The divestment frees capital for Holcim’s NextGen Growth 2030 strategy, earmarked for organic growth, acquisitions and sustainability priorities including low‑carbon materials and circular construction. Huaxin, with operations across multiple countries and several African plants, plans to combine its expertise with Lafarge Africa’s local management. The transaction involved regulatory oversight and reflects a wider industry shift toward sustainability‑driven, higher‑margin markets.
Holcim completes $1.0B sale of Lafarge Africa stake to Huaxin Cement to fund NextGen Growth plan
The deal wraps up Holcim’s divestment of its Nigerian business by selling its entire 83.81% stake in Lafarge Africa PLC to Huaxin Cement for a reported US$1.0 billion on a 100% basis before any dividend adjustments. The completion date is noted in sources dated August 2025, marking a milestone in Holcim’s strategic shift toward its NextGen Growth 2030 agenda. This move is described as reallocating capital toward higher‑margin, sustainability‑aligned ventures rather than exiting the market altogether.
Holcim characterized the divestment as opening up funds for growth‑oriented capital allocation. The company indicated that the proceeds will support its NextGen Growth 2030 priorities, including a broad plan to deploy CHF 18–22 billion between 2025 and 2030 across organic growth, value‑accretive M&A and shareholder returns. The objective is to strengthen balance sheets and accelerate investments in sustainable infrastructure and products.
Who is taking Lafarge Africa forward?
Huaxin Cement, which operates more than 60 cement plants and other businesses across 12 countries, including several in Africa, will assume Lafarge Africa’s management and continue developing the business in Nigeria. Huaxin’s leadership has stated an intent to leverage Lafarge Africa’s existing staff knowledge in combination with Huaxin’s broader experience to pursue growth opportunities in Nigeria’s building materials market.
What Lafarge Africa and Holcim see in the move
The Lafarge Africa leadership has framed the Nigerian operation’s 65‑year journey as one of resilience, collaboration and ongoing growth potential. With Huaxin’s investment, Lafarge Africa aims to build on its market position while drawing on the parent company’s global scale and experience. The deal aligns with Holcim’s strategy to redeploy capital into markets and product lines with stronger industrialization momentum and a focus on decarbonization and efficiency.
Broader context: market and strategy
The sale is placed within a wider industry trend where Western firms recalibrate exposure in some African markets, while Chinese firms and impact investors take on greater roles in acquisitions and development. In Holcim’s broader strategy, the divestment is described as a strategic reallocation of capital toward sustainable growth avenues rather than a retreat from exposure to Africa or emerging markets.
Holcim has an AA MSCI ESG rating, and the group emphasizes sustainable, low‑carbon products and circular construction. Its NextGen 2030 plan targets a shift in the revenue mix toward Building Solutions as well as Building Materials, with a 50/50 split envisioned by 2030. The company also aims to recycle over 20 million tons of construction demolition materials by 2030 using its ECOCycle platform, underscoring a push toward circularity in construction materials.
Industry context cited alongside the deal notes a global construction materials market valued at roughly $1.57 trillion in 2025, with a projected 6.7% CAGR through 2032. Growth is driven by urbanization and decarbonization trends, and investors are following opportunities in markets and segments with higher margin potential and stronger ESG credentials.
Within Holcim’s broader activity, the company highlighted several 2025 milestones that illustrate its ongoing transformation: 11 value‑accretive acquisitions in target regions, including Tribex in Serbia and Klokotnitsa IM EOOD in Bulgaria; expansion of the Disensa retail franchise with 170 new stores in Peru and Argentina; and a continued focus on digital and operational improvements that have yielded cost efficiencies and improved project delivery in other markets. Industry observations point to Building Information Modeling (BIM) as a tool that can shorten project timelines and trim costs, reflecting a wider shift toward digitalization in construction materials supply chains.
Executives described the Nigerian divestment as a measured reallocation of capital toward higher‑margin, sustainability‑led activities. The move is framed as part of Holcim’s transformation toward sustainable infrastructure and long‑term shareholder value, with a focus on delivering circular construction, low‑carbon materials, and advanced Building Solutions as core growth vectors.
Regulatory and regional notes
While the Nigerian divestment proceeded, it faced regulatory complexities, including a Federal High Court order to maintain the status quo during an appeal process. The event reflects the challenges of operating in some markets while reinforcing the rationale for reallocating capital to markets and segments with clearer pathways to sustainable growth.
Key takeaways
The sale marks a deliberate step in Holcim’s transformation strategy, shifting capital toward regions and product lines with stronger decarbonization momentum and higher profitability. It underscores a broader industry pattern where corporate strategies balance asset sales with strategic acquisitions and the expansion of sustainable offerings in construction materials and solutions.
Key facts at a glance
- Sale value: US$1.0 billion for the 83.81% Lafarge Africa stake on a 100% basis before dividends.
- Buyer: Huaxin Cement, a firm with operations in multiple countries and Africa.
- Purpose: Fund Holcim’s NextGen Growth 2030 strategy and sustainable growth priorities.
- Strategic aims: 50/50 revenue split between Building Materials and Building Solutions by 2030; 50% of net sales from sustainable products; ECOCycle recycling target of over 20 million tons by 2030.
- Market context: Global construction materials market valued around $1.57 trillion in 2025; projected 6.7% CAGR to 2032; urbanization and decarbonization as drivers.
- Related actions: 11 value‑accretive acquisitions in 2025 in target regions; expansion of Disensa stores; ongoing digital and efficiency initiatives.
- Regulatory note: Nigerian divestment faced legal/regulatory complexity with a court order during the appeal process.
Table: key features of the post
| Feature | Description | Representative Figures |
|---|---|---|
| Asset divestment | Sale of Lafarge Africa stake to Huaxin Cement to fund growth plan | 83.81% stake; US$1.0 billion equity value |
| Funding framework | NextGen Growth 2030 capital deployment plan | CHF 18–22 billion (2025–2030) |
| Sustainability targets | Shift toward sustainable products and circular construction | 50% net sales from sustainable products by 2030; ECOCycle target >20 million tons recycled |
| Market context | Global construction materials landscape and drivers | Market size ~US$1.57 trillion; 6.7% CAGR to 2032; urbanization and decarbonization |
| Strategic moves | Acquisitions and expansion to bolster regional presence | 11 value‑accretive acquisitions in 2025; Disensa expansion (170 stores) |
Frequently Asked Questions
- What did Holcim sell and for how much?
- Holcim completed the sale of its entire 83.81% stake in Lafarge Africa PLC to Huaxin Cement for US$1.0 billion on a 100% basis before dividends.
- Who bought Lafarge Africa stake and why?
- The stake was sold to Huaxin Cement, a buyer with a global footprint and intentions to develop Lafarge Africa within Nigeria, aligning with Holcim’s plan to redeploy capital toward higher‑margin, sustainable growth opportunities.
- What is the NextGen Growth 2030 plan?
- NextGen Growth 2030 is Holcim’s strategic program to deploy capital toward organic growth, value‑accretive acquisitions and shareholder returns, with sustainability and decarbonization front and center.
- Key goals include deriving 50% of net sales from sustainable products by 2030, achieving a 50/50 revenue split between Building Materials and Building Solutions, and recycling more than 20 million tons of construction demolition materials via the ECOCycle platform by 2030.
- How does this fit with broader market trends?
- The divestment aligns with a trend of reallocating capital from volatile markets toward higher‑margin, sustainability‑oriented ventures, in a landscape where urbanization and decarbonization are driving demand for sustainable construction solutions.
- What other notable moves occurred in 2025?
- Holcim reported multiple value‑accretive acquisitions in target regions, expansion of its Disensa retail network with hundreds of new stores, and ongoing digital and efficiency programs aimed at reducing costs and improving project delivery.