Swiss cement maker Holcim will exit its Nigerian business through the sale of its nearly 84 per cent stake in Lafarge Africa to China’s Huaxin Cement, the firm announced in a statement on Sunday.

The sale price was $1bn for a 100 per cent stake.

It stated, “The sale aligns with Holcim’s strategy to streamline its portfolio and focus on high-growth regions, including the upcoming spin-off of its North American business, which remains on track for a US listing in the first half of 2025.

“The transaction is expected to close in 2025, subject to regulatory approval, according to Holcim’s statement, which did not provide further details on the reason for this specific sale.”

In November 2023, Holcim said it had signed deals to sell its businesses in Uganda and Tanzania, further advancing its strategy to consolidate leadership in core markets as the global leader in innovative and sustainable building solutions.

According to Reuters, the deal marks the latest in a series of African acquisitions by Huaxin Cement.

In 2021, Huaxin Cement announced it had agreed to buy two businesses that were part of Lafarge, which merged with Holcim in 2015: a 75 per cent stake in Lafarge Zambia and all of Lafarge Cement Malawi.

Last year, it also announced the purchase of South Africa’s Natal Portland Cement Company.

Holcim had been focusing on sustainable growth in its core markets, higher-margin products, and strategic infrastructure investments.

The company is also working to enhance its environmental credentials, having taken a stake in Sublime Systems, a U.S. tech start-up focused on low-carbon cement.

In October, Holcim reported a slightly better-than-expected recurring operating profit of 1.67 bn Swiss francs ($1.90 bn) for the third quarter.