Nigeria’s Senate approved the proposed $1 billion acquisition of Lafarge Africa Plc by China’s Hainan Huaxin Pan-African Investment Company Plc on Thursday, saying the deal would not affect the 16.19% equity held by Nigerian public investors.
The approval followed adoption of a report by a Senate ad hoc committee, chaired by Minority Leader Abba Moro, which was formed seven months ago to investigate the transaction after lawmakers raised concerns over Lafarge Africa’s ownership structure. The committee said its review found no legal impediment to the sale, recommending it proceed provided all parties comply fully with Nigerian law.
Under the deal, Swiss parent company Holcim AG is divesting an 83.8% stake in Lafarge Africa to Huaxin, meaning the transaction involves a transfer of ownership between two foreign companies rather than a sale of a Nigerian-owned asset, according to the committee. Lafarge Africa is listed on the Nigerian Exchange and controls roughly 18% of the country’s cement market.
The committee said regulators, including the Securities and Exchange Commission, the Corporate Affairs Commission, the Federal Competition and Consumer Protection Commission, the Nigerian Investment Promotion Commission and the Bureau of Public Enterprises, had reviewed the transaction and found no breach of Nigerian law or immediate national security risk. It said Huaxin had committed to injecting additional capital into Lafarge’s Nigerian and African operations and had assured regulators there would be no staff layoffs during the transition.
Some senators pushed back during debate. Bauchi Central senator Abdul Ningi questioned the committee’s ownership breakdown, noting that Nigerian and Holcim stakes accounted for only about 34% of the company combined and asking who held the remaining 66% of shares. The Senate nonetheless urged regulatory agencies to maintain oversight through the deal’s completion and encouraged continued foreign direct investment in the sector.
