Holcim to Wind up Nigerian Company

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Holcim Nigeria 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 on Tuesday.

Holcim Nigeria is now part of Lafarge Africa following a mega-merger in 2015 to create the world’s biggest cement maker LafargeHolcim.

Reuters quoted LafargeHolcim Chairman, Beat Hess, to have 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 August 21.

Lafarge Africa expects to generate cost saving synergies of N9 billion ($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 N140 billion 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 would 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.