Holcim, a Swiss building materials company, has become the latest multinational corporation to exit Nigeria. Over the weekend, the company agreed to sell its 83.81% stake in Lafarge Africa, a leading cement company in Nigeria, to Huaxin Cement Limited, a Chinese firm, in a deal valued at $1 billion.
In a statement on Sunday, Holcim confirmed that the agreement has already been signed and noted that the transaction is expected to close next year. “Holcim has signed an agreement with Huaxin Cement Ltd to sell its entire 83.81% shareholding in Lafarge Africa Plc, at an equity value of $1 billion on a 100% basis,” the statement reads.
“The transaction is expected to close in 2025, subject to customary and regulatory approvals.” However, Holcim did not provide any reasons for its exit. This is the latest in a series of high-profile departures from the Nigerian business landscape.
On May 24, Kimberly-Clark, the makers of Huggies, announced its plans to cease local manufacturing and sales in Nigeria after 14 years of operation. The company cited a refocus of its corporate priorities globally and economic trends in the country as reasons for this decision.
Additionally, in October, Pick n Pay, a South African grocery retailer, announced plans to exit Nigeria by selling its 51% stake in a joint venture. Sean Summers, CEO of Pick n Pay, indicated that this move is part of the company’s restructuring plans outside of its home market. In 2023 alone, three pharmaceutical companies exited Nigeria. GlaxoSmithKline (GSK) Consumer Nigeria Plc ceased operations and transferred its business activities to a third-party organization. Sanofi-Aventis Nigeria Limited, a French pharmaceutical company, halted its direct operations in the country in November 2023.
One month later, Procter & Gamble (P&G), an American multinational consumer goods company, announced plans to shift from local production to solely importing its products.
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