Holcim has confirmed it will sell its stake in Lafarge Africa PLC to Huaxin Cement Ltd after the two signed an agreement.
Under the terms of the agreement, Holcim will sell its entire 83.81 per cent shareholding in Lafarge Africa PLC to Huaxin Cement. The deal has an equity value of USD 1 billion on a 100 per cent basis.
According to Holcim, the transaction is expected to be completed in 2025 subject to customary and regulatory approvals.
The deal underlines Holcim’s recent deals which have continued to refine its footprint as a global company and also within the African region over the past two years.
In November last year, Holcim divested its businesses in Uganda and Tanazania citing the need to consolidate its “leadership in core markets”.
“These divestments advance our strategy to consolidate our leadership in core markets as the global leader in innovative and sustainable building solutions,” said Martin Kriegner, regional head of Asia, Middle East & Africa for Holcim.
It sold its local subsidiary in Uganda to the Sarrai Group for an enterprise value of USD 120 million. It also sold its 65 per cent participation in Mbeya Cement Company Ltd in Tanzania to Amsons Group for an undisclosed sum.
“With the Sarrai Group and Amsons Group, we are pleased to have found strategic and trusted partners who are best positioned to develop these businesses in the long term,” Kriegner said at the time.
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