Swiss cement maker Holcim is set to exit Nigeria over unfavourable economic conditions under the Bola Tinubu administration.
The company, which owned an 84 per cent stake in Lafarge Africa (WAPCO.LG), disclosed on Sunday that it has sold its stake to China’s Huaxin Cement for $1 billion, as reported by Reuters.
According to Holcim, the deal, projected to be sealed by 2025, is subject to regulatory approvals.
The transaction is geared towards streamlining its portfolio by targeting high-growth regions like North America, which will, in 2025, the U.S.
The company is said to be focused on sustainable growth in its core markets, higher-margin products and strategic infrastructure investments.
The development comes after the company, in September, acquired a stake in Sublime Systems, a U.S. tech start-up dealing in low-carbon cement, as it plans to improve its environmental credentials.
It’s also coming after the company, in October, reported a slightly better than expected after making a recurring operating profit of 1.67 billion Swiss francs ($1.90 billion) for the third quarter of 2024.
Other companies that have dumped Nigeria in 2024 include Pick n Pay, Microsoft Nigeria, Total Energies Nigeria, PZ Cussons Nigeria PLC, Kimberly-Clark Nigeria, and Diageo PLC, while a few others have left in 2023 after the president assumed office.
