Would you like to receive notifications on latest updates of the following headlines?

Harsh Economy: Holcim bows out of Nigeria after sell-off of $1bn Lafarge stake to China’s Huaxin cement

POSTED ON December 2, 2024 •   Breaking News      BY Benedicta Bassey
The logo of Swiss cement maker Holcim is seen at its headquarters in Zug, Switzerland. Photo: REUTERS/Arnd Wiegmann

LAGOS STATE, Nigeria  — Top cement manufacturer, Holcim, is set to exit Nigeria over unfavourably economic conditions of doing business presently.

Holcim who owned an 84 per cent stake in Lafarge Africa (WAPCO.LG), made this disclosure on Sunday, adding that it has now sold its stake to China’s Huaxin Cement for $1 billion, as reported by Reuters.

The deal which is projected to be sealed in 2025, Holcim said its transaction is geared towards streamlining its portfolio by targeting high-growth regions like North America, with a U.S. listing in 2025.

The company is said to be focused on sustainable growth in its core markets, higher-margin products and strategic infrastructure investments.

The development became imperative after the company acquired a stake in Sublime Systems, a U.S. tech start-up dealing in low-carbon cement, in September, as it plans to improve its environmental credentials.

Recall that, the company reported a slightly better-than-expected recurring operating profit of 1.67 billion Swiss francs ($1.90 billion) for the third quarter of 2024 in October.

However, Lafarge had, in February 2024, announced an 8.6 per cent revenue growth from N373.25 billion to N405.50 billion and declared a N51.14 billion profit after tax (PAT) in 2023, which represented a 4.7 per cent drop year on year while also recording N21 billion Foreign exchange losses in 2023.

The company attributed its PAT decline to the higher effective tax rate and the pressures from FX losses due to the naira’s steady loss of value, with the local currency currently trading for N1,700 to a dollar from N700 in 2023.

The move has also been impacted by the sudden removal of fuel subsidy, which has stood as a major factor contributing to the steady increases in the prices of raw materials and other products, including cement.

Meanwhile, in October 2024, the company, in its unaudited condensed financial statements for the period ending September 30, 2024, announced that its PAT rose by 53 per cent to N60.08 billion after the first nine months of 2024 compared to N39.31billion at the end of the same period in 2023.

So far, following the current economic hardship, other companies that have exited Nigeria in 2024 include Pick n Pay, Microsoft Nigeria, Total Energies Nigeria, PZ Cussons Nigeria PLC, Kimberly-Clark Nigeria, and Diageo PLC. Sanofi pharmaceutical multinational and GlaxoSmithKline Consumer Nigeria Plc.

READ ALSO
IPMAN Links Rising Petrol Prices to Crude Oil Costs and Market Dynamics
BY Abiodun Saheed Omodara June 24, 2025 0

ABUJA, Nigeria (NAN) - The Public Relations Officer of the Independent Petroleum Marketers Associati...

READ ALSO
Tinubu Launches National Mechanised Farming Programme to Tackle Food Insecurity
BY Abiodun Saheed Omodara June 23, 2025 0

In a bid to combat food insecurity and encourage youth participation in farming, President Bola Tinu...

READ ALSO
Oil Prices Surge Amid U.S. Airstrikes on Iran's Nuclear Sites
BY Abiodun Saheed Omodara June 23, 2025 0

Oil prices rose on Monday while the dollar gained strength following the U.S. airstrikes on Iran's n...

READ ALSO
FG Coordinates Evacuation Plans for Citizens in Iran-  Minister
BY Abiodun Saheed Omodara June 22, 2025 0

ABUJA, Nigeria - The Minister of Foreign Affairs, Ambassador Yusuf Tuggar, has refuted false narrati...

READ ALSO
Governors, FG Unite to Tackle Food Security Challenges
BY Abiodun Saheed Omodara June 20, 2025 0

The 36 state governors have come together to collaborate with the Federal Government on harmonizing...

READ ALSO
Tinubu to Launch Multiple Development Projects Today in Kaduna
BY Abiodun Saheed Omodara June 19, 2025 0

KADUNA, Nigeria - President Bola Tinubu is anticipated to arrive in Kaduna State today for the inaug...

READ ALSO
ECOWAS Calls for Unified Action Against Plastic Pollution at World Environment Day
BY Abiodun Saheed Omodara June 18, 2025 0

The Economic Community of West African States (ECOWAS) is calling for a unified regional effort from...

READ ALSO
Trump Proposes Visa Ban on Nigeria Amid Corruption Concerns
BY Abiodun Saheed Omodara June 15, 2025 0

The administration of U.S. President Donald Trump has initiated plans to impose a general visa ban o...

OUR CHANNELS:

Kebbi Vows to Tackle Informants Aiding Bandits
BY Abiodun Saheed Omodara June 26, 2025 0

KEBBI, Nigeria - Kebbi State Governor, Dr. Nasir Idris, has pledged to take action against informant...


PDP seeks Tinubu’s intervention in Osun Crisis
BY Abiodun Saheed Omodara June 26, 2025 0

The Osun State chapter of the Peoples Democratic Party has urged President Bola Tinubu to step in re...


24 Lawmakers Leave PDP for APC Amid Unresolved Internal Conflicts
BY Abiodun Saheed Omodara June 26, 2025 0

AKWA IBOM, Nigeria - Twenty-four out of the 26 members of the House of Assembly in Akwa Ibom State h...


Nigeria's 2024 Budget Capital Extension Draws Criticism from Economists
BY Abiodun Saheed Omodara June 26, 2025 0

The Senate and House of Representatives have once again prolonged the implementation of the capital...


Chelsea Advances to Last 16 of Club World Cup with 3-0 Win Over Esperance
BY Abiodun Saheed Omodara June 26, 2025 0

Liam Delap netted his first goal for Chelsea during a 3-0 victory over Tunisian champions Esperance...


IPOB Rejects Tinubu's Cattle Ranch Proposal as a Disguise for Land Grabbing
BY Abiodun Saheed Omodara June 26, 2025 0

ABUJA, Nigeria - The Indigenous People of Biafra (IPOB) has expressed its disapproval of President B...


Police Unveils New Strategies to Combat Gunmen and Restore Public Confidence
BY Abiodun Saheed Omodara June 26, 2025 0

ANAMBRA, Nigeria - In its continued efforts to boost security and regain public trust, the Anambra S...


Nigeria's Gemstone Potential: A Deep Dive into 10 Rare Minerals and Their Regions of Origin
BY Abiodun Saheed Omodara June 26, 2025 0

Nigeria is making waves with a revolutionary $400 million Foreign Direct Investment dedicated to cre...


IPMAN Links Rising Petrol Prices to Crude Oil Costs and Market Dynamics
BY Abiodun Saheed Omodara June 26, 2025 0

ABUJA, Nigeria (NAN) - The Public Relations Officer of the Independent Petroleum Marketers Associati...


EFCC Charges Businessman, Company with $75,000 Fraud
BY Abiodun Saheed Omodara June 26, 2025 0

A businessman, Peter Otomewu, along with his company, Pebeto Enerji Limited, was brought before the...


More Articles

Load more...

Menu