Senate endorses $1 billion Chinese takeover of Lafarge Africa
The Senate has given its approval for the planned $1 billion purchase of Lafarge Africa Plc by Hainan Huaxin Pan‑African Investment Company Plc, a Chinese‑owned investment firm.
Lawmakers said the transaction will not disturb the 16.19 percent stake currently held by Nigerian investors in the cement producer.
The endorsement came during Thursday’s plenary session after the Senate adopted a report from its ad hoc committee, chaired by Senate Minority Leader Abba Moro.
The committee, set up seven months earlier to examine Holcim AG’s plan to sell its 83.81 percent share in Lafarge Africa, consulted regulators, government agencies and other stakeholders and found no legal barrier to the deal.
Moro explained that the panel recommended allowing the acquisition to proceed, provided all parties obey Nigerian laws and stay under regulatory supervision.
He urged relevant agencies to monitor every stage of the transaction to guarantee compliance with corporate, investment and competition legislation.
The Senate also asked the new investors to bolster Lafarge Africa’s corporate social responsibility programmes, especially in communities hosting its plants.
The committee clarified that the deal is essentially a shift of ownership from one foreign entity to another, as Holcim, the majority shareholder, is selling its stake to Huaxin.
It emphasized that the rights and interests of Nigerian shareholders would not be diminished and that the 16.19 percent held by the Federal Government and other local investors would stay unchanged.
Regulatory bodies consulted during the review reported no evidence that the acquisition breaches Nigeria’s legal or regulatory framework, nor any immediate sign that it threatens national security or economic interests.
Huaxin has pledged to inject fresh capital into Lafarge Africa’s operations in Nigeria and other African markets, a move expected to enhance the company’s performance, stimulate industrial activity and attract more foreign direct investment.
Lafarge Africa controls roughly 18 percent of Nigeria’s cement market, and the committee noted that the takeover is unlikely to markedly distort competition in the sector.
The Federal Competition and Consumer Protection Commission (FCCPC) said it had received assurances from the acquiring firm that no workers would be laid off during the ownership transition.
During the debate, Senator Abdul Ningi of Bauchi Central questioned the ownership breakdown presented in the report, asking for clarification on the remaining 66 percent of shares not accounted for by Nigerian or Lafarge holdings.
Ningi argued that the committee should have specified the exact shareholding structure before seeking Senate approval, noting that the transaction merely transfers ownership between two foreign companies.
Senators Osita Izunaso, chair of the Senate Committee on Capital Market, and Shuaib Salisu of Ogun Central supported the committee’s recommendations.
After the discussion, the Senate adopted the report, thereby giving legislative backing to the proposed acquisition.
The endorsement follows months of work by the Senate Committee on Capital Market, which began its review after Holcim signaled its intention to divest its 83.81 percent stake in Lafarge Africa.
At that time, the Securities and Exchange Commission told legislators it had not yet received a formal filing about the sale, describing the matter as an internal Holcim restructuring.
The Bureau of Public Enterprises likewise confirmed that the shares being sold belong to Holcim and that the Nigerian investors’ 16.19 percent equity would remain unaffected.
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