” Read now ➤ Home Business and Economy Industry INDUSTRY Chinese Firm Reaches Final Deal to Acquire Nigerian Cement Company to Rival Dangote, BUA, Others 0 Updated Monday, December 09, 2024 at 3:14 PM by Pascal Oparada 3 min read The Chinese firm acquiring Holcim’s share in Lafarge Africa has valued the 100% stake at $1.6 billion The foreign firm will reportedly be paying $838.8 million to acquire Holcim’s share in the company If finalised, Lafarge Africa would become one of the Nigerian Exchange Limited’s most valuable firms PAY ATTENTION: Follow our WhatsApp channel to never miss out on the news that matters to you! Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade. Huaxin Cement Company, the Chinese firm expected to buy out Holcim’s 83% stake in Lafarge Africa, has reportedly valued 100% of the company’s shareholding at $1.6 billion. The group will spend $838.8 million in acquiring Holcim’s stake in Lafarge Africa, estimating the company’s enterprise value to be between $1.06 billion and $1.59 billion. Huaxim Cement Company is set to finalise a deal to acquire Holcim’s stake in Lafarge Africa, affecting Nigeria’s cement price. Credit: Bloomberg/Contributor Source: Getty Images According to a report by Business Day, the company’s valuation was disclosed in its filing on the Hong Kong Exchange. PAY ATTENTION: Standing out in social media world? Easy! “Mastering Storytelling for Social Media” workshop by Legit.ng. Join Us Live! This estimated cement prices in Nigeria to be between $100 and $150 per tonne, based on Lafarge’s annual production capacity of 10.6 million tonnes. READ ALSO BDC operators react as traders predict N1,400/$ this week The firm also assumed the replacement value of Lafarge Africa’s assets to be $1.2 billion to $1.4 billion, with an enterprise value of $1.057 billion. The Chinese firm used an alternative valuation approach: it multiplied Lafarge Africa’s 2023 EBITDA of $151 million by a factor of seven, resulting in an enterprise value of $1.057 billion. Lafarge Africa stated that the acquisition aligned with Huaxin’s overseas expansion plan, focusing on leveraging its expertise in industrial technology and production chain integration to drive growth. Chinese firm to introduce new technology Huaxim also aims to counter the effects of China’s domestic market shutdown, which could mark a significant shift in Nigeria. Indian cement firms previously dominated the sector before the arrival of Dangote Cement, Africa’s largest manufacturer. Insiders have said Huaxin is developing a new pricing model that could disrupt the Nigerian cement industry and potentially crash prices. Lafarge Africa’s share price rises READ ALSO FG’s debt to China, India, IMF, others rises by N30tn, full list shows top creditors and amount owed Huaxin’s entry into the Nigerian cement industry will mark the beginning of the introduction of new technologies, production methods, and pricing models. If finalised in August next year, with the exchange rate at N1,700 per dollar, Lafarge Africa’s market cap would be about N1.87 trillion. Since the deal was announced on December 1, 2024, the cement company’s share price has skyrocketed by 21%, hitting a high of N70.15 as of December 3, 2024. Experts said the new deal could cause cement prices to crash in Nigeria, as the new company will have a different pricing model and new technology. Cement prices in Nigeria have soared recently, with brands selling for as much as N8,000 per 50kg and N7,500 amid a spike in construction costs. Dangote, BUA, Lafarge earn N3.6trn in sales Legit.ng earlier reported that three of Nigeria’s biggest cement manufacturers earned a combined revenue of N3.632 trillion in the third quarter of 2024. READ ALSO Dangote, 3 other Nigerian billionaires’ wealth drops to $23.8 billion in 2024 Dangote, BUA, and Lafarge Africa’s respective revenue represented a 6.3% increase from N2.140 trillion earned by the firms in the same period in 2023. The new sales volume comes amid economic challenges that disrupted Nigeria’s business environment, such as the forex crisis and rising energy costs. Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng. PAY ATTENTION: Legit.ng Needs Your Opinion! That’s your chance to change your favourite news media. Fill in a short questionnaire Source: Legit.ng 0 AUTHORS: Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng TAGS: FEDERAL GOVERNMENT OF NIGERIAALIKO DANGOTE HOT: AMMIKA HARRIS HOW OLD IS GOLDBERG JOHN CLARK GABLE TRACY GRIMSHAW RECOMMENDED FOR YOU How many people wrote the Bible, and over how many years was it written? a day ago Lady who returned to Nigeria after relocating to UK shares reason: “Na my h… 9 hours ago Pastor Tobi Adegboyega finally mentions who finances his luxury lifestyle 22 hours ago Traders sell rice, beans at new prices ahead of Christmas celebration a day ago Nigerian bride cries throughout traditional and white wedding: “She’s the l… a day ago CHECK MORE ARTICLES FOR YOU Read more LATEST Tinubu’s key minister meets Buhari in Katsina, “consultation going well” 3 hours ago Emir Sanusi vows to depose title holders, gives reason 2 minutes ago 2027: Akume drops bombshell, tells Atiku, northern leaders to kill presidential ambition until 2031 4 minutes ago Outrage over viral video of student being chained, bullied in Abuja school 4 minutes ago John Mahama: 5 things to know about Ghana’s ‘president-elect’ who lived in Kwara, Nigeria 4 minutes ago TRENDING NDIC begins selling properties of failed bank, names customers who can claim benefit 19 hours ago Full list: UK releases names of companies eligible to sponsor Nigerians for work visa in 2025 4 days ago Good news as Billionaire’s company set to begin new investment in Nigeria a day ago “Appear in white”: Federal Fire Service ready to employ Nigerians, shares recruitment updates a day ago FG launches N20bn loan scheme for Nigerians to acquire Innoson, other locally-assembled vehicles 3 days ago Chinese cement company set to take over Dangote Cement rival, Lafarge Africa in a $1bn deal 7 days ago Formal report, other ways to retrieve funds mistakenly sent to wrong accounts in Nigeria 10 hours ago 11 banks earn N6.5trn from loans, advances as CBN releases interest rates for Access, UBA, others 4 days ago TOP STORIES BBNaija Uriel’s mum breaks down in tears over video call as she expresses missing her daughter 7 minutes ago Blaqbonez shares sad childhood experience, uncertainty over paternity: “Wasn’t raised by dad” 3 hours ago Drama as thugs invade Edo State High Court, disrupt governorship election tribunal 5 minutes ago Olajumoke Onibread: Heartbreaking video as model says team failed to give her Harrysong’s N400k 6 hours ago “BATeria”: Nigerians angrily react to Tinubu’s “things are changing” statement 37 minutes ago MORE ABOUT OUR COMPANY About Us Our Authors Our Experts Media Mentions Contact us Our Manifesto Advertise with us Work for us DMCA Removal Privacy Policy Terms and conditions Policies and standards Cookie policy Categories Tags Do Not Sell My Personal Information Notice at collection Affiliate Disclaimer SOCIAL MEDIA Facebook Instagram Twitter Telegram YouTube TikTok LinkedIn Hausa News Pinterest Mastodon WhatsApp Naija News Whatsapp Sports News WhatsApp READ US Our applications for phones Naij.com Media Limited, 2024 All rights reserved ” https://www.legit.ng/business-economy/industry/1629511-chinese-firm-reaches-final-deal-acquire-nigerian-cement-company-rival-dangote-bua-others/#:~:text=Read%20now%20%E2%9E%A4,All%20rights%20reserved
Leave a comment