Senate Gives Green Light To $1 Billion Chinese Purchase Of Lafarge Africa

The approval was granted during Thursday’s plenary after lawmakers considered and adopted the report of an ad hoc committee led by the Senate Minority Leader, Abba Moro. The committee was established about seven months ago to examine Holcim AG’s proposed divestment from Lafarge Africa following concerns over the company’s ownership structure, regulatory compliance, and the potential economic implications for Nigeria.

Presenting the committee’s findings, Moro disclosed that consultations were held with relevant government agencies, regulators, and key stakeholders, with no legal impediments identified to prevent the transaction from proceeding. He explained that the committee recommended approval of the acquisition, provided all parties involved strictly comply with existing Nigerian laws and remain under the supervision of the appropriate regulatory authorities throughout the transition process.

The Senate also directed 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), to closely monitor every stage of the acquisition to ensure full compliance with Nigeria’s corporate, investment, and competition laws.

Lawmakers further urged the incoming investors to strengthen Lafarge Africa’s corporate social responsibility initiatives, particularly in communities hosting the company’s operations.

The committee clarified that widespread public concerns surrounding the transaction were largely based on the misconception that Lafarge Africa is wholly Nigerian-owned. It explained that the acquisition is essentially a transfer of shares from one foreign investor, Holcim AG, to another foreign investor, Huaxin, and does not alter the rights or interests of Nigerian shareholders.

According to the report, the 16.19 per cent equity held by the Federal Government and other Nigerian investors will remain intact after the transaction, while regulatory agencies involved in the review found no evidence that the acquisition violates Nigerian laws or poses immediate risks to national security or the country’s economic interests.

The committee also noted that Huaxin has pledged to inject fresh capital into Lafarge Africa’s Nigerian and African operations. The investment is expected to enhance the company’s production capacity, stimulate industrial growth, and attract additional foreign direct investment into Nigeria. It added that Lafarge Africa controls approximately 18 per cent of Nigeria’s cement market, with the acquisition unlikely to distort competition within the sector.

In addition, the FCCPC informed lawmakers that the acquiring company had assured regulators that no employees would lose their jobs during the ownership transition.

During deliberations, Senator Abdul Ningi, representing Bauchi Central, questioned aspects of the company’s shareholding structure. He argued that while the report identified Nigerian investors as holding about 16 per cent of the shares and attributed another portion to Holcim, it failed to clearly account for the ownership of the remaining shares. Ningi maintained that a clearer breakdown of the company’s ownership was necessary to determine whether Nigerians truly stand to benefit from the transaction.

He also stressed that the proposed acquisition should not be viewed as the sale of a Nigerian strategic asset but rather as a transfer of ownership between two foreign entities, adding that the committee should have explicitly referenced the legal provisions governing such transactions.

Despite the concerns raised, senators, including the Chairman of the Senate Committee on Capital Market, Osita Izunaso, and Senator Shuaib Salisu of Ogun Central, expressed support for the committee’s recommendations.

Following the debate, the Senate adopted the report, officially giving legislative backing to the proposed acquisition. The endorsement follows months of investigation into Holcim Group’s plan to divest its 83.81 per cent stake in Lafarge Africa.

During the review process, the SEC informed lawmakers that it had not received a formal application for the proposed sale, explaining that it had only been notified of what Holcim described as an internal restructuring. The Bureau of Public Enterprises also assured the Senate that the transaction concerns Holcim’s shares alone and would not affect the equity held by Nigerian investors. The Senate committee subsequently invited Lafarge Africa’s management and requested additional information from the Corporate Affairs Commission before concluding its investigation.