Senate approves $1bn Lafarge acquisition by Chinese investor, says Nigerian shareholders protected
The Senate has approved the proposed $1 billion acquisition of Lafarge Africa Plc by Chinese firm Hainan Huaxin Pan-African Investment Company Plc, stating that the deal will not affect the 16.19 percent shareholding owned by Nigerian investors.
The approval followed the adoption of a report presented on Thursday by the Senate’s ad hoc committee led by Senate Minority Leader Abba Moro.
Presenting the committee’s findings, Moro said consultations with relevant stakeholders showed no legal barriers to the transaction. He recommended that the acquisition proceed, provided all applicable Nigerian laws are followed and regulatory agencies continue to monitor the process
“The senate allowed the transaction process concerning the sale of Lafarge Cement Company Plc to Huaxin to scale through,” he said.
“However, all due processes and strict compliance with all Nigerian extant laws on the subject must be followed and adhered to strictly for a hitch-free transaction and transition process.”
The Senate also urged key regulators, including the Securities and Exchange Commission (SEC), Corporate Affairs Commission (CAC), Federal Competition and Consumer Protection Commission (FCCPC), Nigerian Investment Promotion Commission (NIPC), and the Bureau of Public Enterprises (BPE), to closely supervise the transaction.
In addition, the committee advised the incoming owners to expand their corporate social responsibility initiatives in communities where Lafarge operates.
According to the report, concerns raised by some members of the public were largely based on the mistaken belief that Lafarge Africa is entirely owned by Nigerian investors. The committee clarified that the transaction involves the transfer of a majority stake from one foreign investor to another, as Holcim is selling its controlling interest to Huaxin.
It stressed that Nigerian shareholders will retain their existing 16.19 percent equity and that their ownership rights will remain unchanged after the acquisition.
The committee further noted that regulatory agencies found no indication that the proposed deal violates any Nigerian law or presents an immediate national security risk.
It also disclosed that Huaxin plans to invest additional capital into Lafarge’s operations in Nigeria and other African markets, a move expected to improve production capacity, encourage industrial development, and attract more foreign direct investment.
