NIGERIA: A notable Swiss building materials company, Holcim, has become the latest multinational to exit Nigeria.
The company, at the weekend, agreed to sell its 83 percent stake in Lafarge Africa, a leading cement company in Nigeria to Huaxin Cement Limited., a Chinese firm in a deal valued at $1 billion.
The company said the agreement has already been signed, noting 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.”
Holcim, however, did not give reasons for its exit.
This is the latest in the series of high-profile exits to rock the Nigerian business ecosystem. On May 24, Kimberly-Clark, makers of Huggies, said it plans to stop local manufacturing and sales in Nigeria after 14 years of operation.
According to the firm, the decision was made owing to its recently refocused corporate priorities globally as well as economic trends in the country.
Pick n Pay, a South African grocery retailer, in October, also announced plans to exit Nigeria by selling its 51 percent stake in a joint venture.
Sean Summers, chief executive officer (CEO) of Pick n Pay, said the move was part of plans to restructure outside of its home market.
In 2023, three pharmaceutical companies exited Nigeria.
GlaxoSmithKline (GSK) Consumer Nigeria Plc ceased operations and transferred its business activities to a third-party organisation.
Sanofi-Aventis Nigeria Limited, a French pharmaceutical company, also halted its direct operations in the country in November 2023.
One month later, Procter & Gamble (P&G), an American multinational consumer goods company, disclosed plans to transition from local production to solely importing its products.
