Chinese Cement Company Lafarge Africa Deal: $1 Billion Acquisition Sparks Industry Buzz
Holcim AG has revealed its decision to sell an 83.8% stake in Lafarge Africa to Huaxin Cement Co., a leading Chinese cement manufacturer.
This groundbreaking deal, valued at $1 billion, represents a significant shift in Nigeria’s cement industry. 
With regulatory approval expected in 2025, the acquisition sets the stage for an exciting era of competition in the market.
Huaxin Cement Expands with Lafarge Africa Acquisition
The Chinese cement company Lafarge Africa deal could potentially double Lafarge’s market capitalisation on the Nigerian Exchange Limited (NGX).
Currently valued at N934 billion (approximately $556 million), Lafarge Africa stands to gain significant ground if Huaxin chooses not to delist the company.
Huaxin Cement, one of China’s top 10 cement manufacturers, brings its expertise to Nigeria’s competitive cement industry. As the market leader in Zambia after acquiring Lafarge Zambia in 2021, Huaxin has proven its capacity for transformative growth.
This deal, therefore, marks an essential step for Huaxin’s ambitions in Africa’s growing construction sector.
Lafarge Africa in the Spotlight of Cement Industry Rivalry
The Chinese cement company Lafarge Africa deal introduces a new dynamic to an industry dominated by Dangote Cement, Africa’s largest cement maker.
With Dangote Cement valued at over N8 trillion on the NGX, Lafarge Africa faces a monumental challenge to capture a more significant market share.
However, Lafarge Africa’s attractive profitability margins and robust revenue of N479.5 billion in the first nine months of 2024 make it a valuable acquisition for Huaxin.
In comparison, Huaxin Cement generated $3.4 billion in revenue during the same period, posting a net profit of $157 million.
Holcim’s Exit Reflects Global Divestment Trends
Holcim’s decision to divest from Nigeria aligns with a global trend among European and American firms exiting emerging markets. Earlier moves included Holcim’s sale of Lafarge Zambia to Huaxin Cement in a $100 million deal.
The entry of Huaxin into Nigeria signifies increased competition, especially with the rising production costs among local cement firms like Dangote and BUA.
Analysts predict that Huaxin’s presence might lead to a recalibration of cement pricing in Nigeria’s market, potentially benefiting consumers.
What This Means for Nigeria’s Cement Industry
The Chinese cement company Lafarge Africa deal not only reshapes the competitive landscape but also positions Huaxin as a key player in Nigeria’s economy.
With its strategic entry, the company may drive innovation and efficiency while challenging established giants like Dangote Cement.
How do you think Huaxin’s acquisition of Lafarge Africa will impact Nigeria’s cement industry? Share your thoughts below.
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