By Ameh Gabriel
Chinese cement giant Huaxin Cement has finalized a $1 billion deal to acquire an 83.81% stake in Lafarge Africa from Swiss building materials group Holcim, in a transaction set to redefine competition in Africa’s largest cement market.
The acquisition, which also includes plans to purchase Holcim’s remaining shares by 2026, hands Huaxin control of four strategic cement plants in Nigeria: Sagamu, Ewekoro, Ashaka, and Mfamosing, with a combined annual production capacity of 10 million tonnes.
Founded in 1907 and headquartered in Hubei Province, Huaxin only entered Africa in 2020. Yet, within just five years, it has emerged as a formidable player, now ranked third in Nigeria behind Dangote Cement and BUA Cement. Dangote leads with a capacity of 35 million tonnes in Nigeria (52 million tonnes across Africa), while BUA, owned by billionaire Abdul Samad Rabiu, is the second-largest producer.
Brownfield Expansion Strategy
Huaxin has built its African presence through brownfield acquisitions buying existing operations instead of building from scratch. Its portfolio already includes ARM Cement’s Tanzanian assets (2020), Lafarge’s Zambia and Malawi businesses (2021), and InterCement’s South Africa and Mozambique operations (2023) valued at $265m.
With the Lafarge Africa deal, Huaxin now controls nearly 30 million tonnes of annual capacity across the continent.
Boosting Global Revenues Amid China’s Slowdown
The move comes as cement demand in China slows due to overcapacity and weaker construction growth. By contrast, Nigeria’s cement demand has surged to 30 million tonnes annually, driven by urbanization and infrastructure projects.
Lafarge Africa generated $450m in revenue in 2024, and the acquisition is expected to significantly strengthen Huaxin’s international earnings, which stood at $4.8bn last year.
Comparatively, Dangote Cement, Africa’s market leader, reported $2.4bn in revenue and $340m in net profit in the same year, showing the potential profitability of Nigeria’s cement industry.
Legal Hurdles and Market Impact
Despite Holcim confirming the deal’s completion in late August, the transaction faces a legal challenge. Strategic Consultancy Ltd, a minority shareholder in Lafarge Africa, has filed a case in the Nigerian federal court alleging it was not consulted before the sale. The firm seeks to annul the transaction.
While Huaxin has declined to comment, industry analysts suggest the deal could intensify competition, potentially improving supply and stabilizing prices for Nigerian consumers.
Commitment to Africa
Huaxin has signaled long-term commitment, investing $30m in its Zambian operations to install a new kiln and modernize facilities. Similar investments are expected in Nigeria as it integrates Lafarge Africa into its global portfolio.
As one analyst put it, “Dangote and BUA have long dominated Nigeria’s cement landscape. Huaxin’s arrival introduces a powerful third force that could reshape market dynamics in favour of consumers.”
