Holcim unveils plan to close shop in Nigeria

Holcim Nigeria has unveil plans to pass a resolution next month to dissolve the company after its Swiss-based parent firm merged with French rival Lafarge two years ago, the cement maker said. Holcim Nigeria is now part of Lafarge Africa following a mega-merger in 2015 to create the world’s biggest cement maker LafargeHolcim. LafargeHolcim Chairman Beat Hess has said the company was still adjusting its structures in big markets where both Lafarge and Holcim are present following the merger.

The cement maker said it will present the final accounts of Holcim Nigeria as part of the voluntary winding up process at a meeting of shareholders on Aug. 21. Lafarge Africa expects to generate cost saving synergies of 9 billion naira ($46 million) by 2018 in Nigeria, following the merger, it has said.

The Nigeria-based business of the Franco-Swiss cement group is in the market to raise 140 billion naira in fresh equity and convert some loans into shares as part of a planned rights issue after it reported losses last year. LafargeHolcim has said it will take part in a capital increase of the Nigerian unit to avoid diluting its nearly 73 percent stake, in a move which would also help simplify the ownership structure in Nigeria.