The Senate has endorsed the proposed acquisition of Lafarge Africa Plc by Chinese firm Huaxin Pan-African Investment Company, stating that the transaction should proceed provided it complies with all applicable Nigerian laws and regulatory requirements.
The upper chamber also assured that the interests of Nigerian public investors, who collectively own a 16.19 per cent stake in the cement company, would remain protected throughout the transaction.
The decision followed the adoption of a report presented by an ad hoc committee chaired by Senate Minority Leader, Senator Abba Moro, which was tasked with reviewing the proposed acquisition after concerns were raised over the ownership structure of Lafarge Africa and its implications for Nigeria.
The investigation, which began under the Senate Committee on Capital Market before being transferred to the ad hoc committee, concluded that the sale should be allowed to proceed while recommending sustained oversight by all relevant regulatory agencies.
According to the committee, the proposed deal is essentially a transfer of shares between two foreign investors, as Lafarge Africa’s majority shareholder is a foreign company selling its stake to Huaxin. It noted that the transaction would not alter the equity holdings of Nigerian shareholders.
The report explained that misconceptions surrounding the deal stemmed from the assumption that Lafarge Africa is wholly Nigerian-owned, whereas the company’s controlling interest has long been held by foreign investors.
The committee further stated that regulatory agencies, 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), had reviewed various aspects of the transaction and found it to be consistent with existing laws and regulatory requirements.
It added that there was no evidence suggesting the acquisition posed any immediate national security risk.
The Senate also noted that Huaxin has expressed plans to inject fresh capital into Lafarge’s operations in Nigeria and across Africa, a move expected to strengthen production capacity, support industrial growth, and boost foreign direct investment.
The committee observed that Lafarge Africa currently accounts for about 18 per cent of Nigeria’s cement market and maintained that the acquisition would not significantly change the existing ownership structure within the industry.
It also disclosed that assurances had been provided regarding the protection of employees during the ownership transition, in line with regulatory directives.
The Senate concluded that the proposed investment has the potential to stimulate economic activity, create employment opportunities, and reinforce investor confidence, while urging continued regulatory oversight to safeguard national interests and ensure compliance with all applicable laws.
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