Huaxin’s $774m Coup: Lafarge Africa Deal Sparks Controversy at Just 66% Market Value
Huaxin Cement has officially acquired Holcim’s 83.8% stake in Lafarge Africa for $773.86 million, a figure that represents only 66% of Lafarge Africa’s current market valuation of $1.17 billion.
Price Adjustment and “Leakages”
Originally priced at $838.8 million, the deal was revised downward after accounting for $64 million in dividends Lafarge Africa had paid to Holcim AG between January 2024 and August 2025. These deductions, tagged “leakages,” were factored into the final purchase price.
At the time of the initial agreement in December 2024, Lafarge shares traded far below today’s ₦130 per share, hovering around ₦77.50 in February 2025. The agreed transaction implied a price of ₦93 per share, which was attractive then but now falls 28% below the market price.
⚖️ Legal & Labour Hurdles
Despite Huaxin and Holcim insisting that the deal is completed, the acquisition is facing a legal challenge in Nigeria. Minority shareholder Strategic Consultancy has taken the matter to the Federal High Court, alleging “secrecy” and denial of the right of first refusal to local investors.
The court has ordered all parties to maintain the status quo until October 9, 2025, when the case will continue.
Meanwhile, some Lafarge Africa staff remain uneasy about the takeover, citing the example of employees in Lafarge Zambia, who faced job uncertainty after Huaxin’s entry.
Huaxin’s Path to 100% Takeover
As required by Nigerian takeover regulations, Huaxin must launch a Mandatory Takeover Offer (MTO) for the remaining 16.19% minority stake in Lafarge Africa.
• Maximum cost: $161.9 million
• Offer capped at: ₦93 per share
With Lafarge’s stock now trading at ₦130, the offer is unlikely to excite minority investors, raising questions about acceptance rates and potential pushback.
Holcim Still in the Picture
Even after selling its Nigerian stake, Holcim retains 41.8% ownership in Huaxin, making it Huaxin’s largest shareholder. This means Holcim’s influence over Lafarge Africa remains indirectly intact.
Huaxin, which operates in 14 provinces in China and across 12 countries globally (including Tanzania, Zambia, and South Africa), has been aggressively expanding in Africa—mostly by acquiring Holcim’s divested assets.
✅ Key Takeaway:
Huaxin Cement has pulled off a strategic bargain, acquiring Lafarge Africa well below current market value. But with legal battles, shareholder resistance, and labour concerns looming, the true cost of this deal may go far beyond the discounted price.
Huaxin Cement has officially acquired Holcim’s 83.8% stake in Lafarge Africa for $773.86 million, a figure that represents only 66% of Lafarge Africa’s current market valuation of $1.17 billion.
Price Adjustment and “Leakages”
Originally priced at $838.8 million, the deal was revised downward after accounting for $64 million in dividends Lafarge Africa had paid to Holcim AG between January 2024 and August 2025. These deductions, tagged “leakages,” were factored into the final purchase price.
At the time of the initial agreement in December 2024, Lafarge shares traded far below today’s ₦130 per share, hovering around ₦77.50 in February 2025. The agreed transaction implied a price of ₦93 per share, which was attractive then but now falls 28% below the market price.
⚖️ Legal & Labour Hurdles
Despite Huaxin and Holcim insisting that the deal is completed, the acquisition is facing a legal challenge in Nigeria. Minority shareholder Strategic Consultancy has taken the matter to the Federal High Court, alleging “secrecy” and denial of the right of first refusal to local investors.
The court has ordered all parties to maintain the status quo until October 9, 2025, when the case will continue.
Meanwhile, some Lafarge Africa staff remain uneasy about the takeover, citing the example of employees in Lafarge Zambia, who faced job uncertainty after Huaxin’s entry.
Huaxin’s Path to 100% Takeover
As required by Nigerian takeover regulations, Huaxin must launch a Mandatory Takeover Offer (MTO) for the remaining 16.19% minority stake in Lafarge Africa.
• Maximum cost: $161.9 million
• Offer capped at: ₦93 per share
With Lafarge’s stock now trading at ₦130, the offer is unlikely to excite minority investors, raising questions about acceptance rates and potential pushback.
Holcim Still in the Picture
Even after selling its Nigerian stake, Holcim retains 41.8% ownership in Huaxin, making it Huaxin’s largest shareholder. This means Holcim’s influence over Lafarge Africa remains indirectly intact.
Huaxin, which operates in 14 provinces in China and across 12 countries globally (including Tanzania, Zambia, and South Africa), has been aggressively expanding in Africa—mostly by acquiring Holcim’s divested assets.
✅ Key Takeaway:
Huaxin Cement has pulled off a strategic bargain, acquiring Lafarge Africa well below current market value. But with legal battles, shareholder resistance, and labour concerns looming, the true cost of this deal may go far beyond the discounted price.