Leadnaija
The Senate has endorsed the proposed $1 billion acquisition of Lafarge Africa Plc by Hainan Huaxin Pan-African Investment Company Plc, a Chinese firm, stating that the transaction will not affect the 16.19 percent equity held by Nigerian investors, according to TheCable.
The approval followed the adoption of a report by its ad hoc committee chaired by Senate Minority Leader Abba Moro, which found no legal impediment to the acquisition.
The committee urged regulatory agencies including SEC, CAC, FCCPC, NIPC, and BPE to maintain rigorous oversight. However, Senator Abdul Ningi questioned the ownership structure, noting that the report failed to explain who owns the remaining 66 percent of the company’s shares. The committee said Huaxin had committed to injecting fresh capital and assured there would be no staff retrenchment.
Key Points:
Nigerian shareholders retain their 16.19% equity stake in the company
The transaction is a transfer of ownership from one foreign investor (Holcim) to another, not a sale of a Nigerian asset
Huaxin has committed to injecting fresh capital and no staff retrenchment
Lafarge controls about 18% of Nigeria’s cement market; the acquisition won’t significantly alter competition
Senator Ningi raised concerns about the unknown ownership of the remaining 66% of shares
The Senate has given legislative backing to the transaction, subject to strict compliance with Nigerian laws and continued regulatory oversight. The transaction is expected to strengthen Lafarge’s operations and support foreign direct investment.
