The Senate on Thursday approved the acquisition of an 83 percent stake in Lafarge Cement Plc by a Chinese company, Hainan Huaxin Pan-African Investment Company Plc.
The approval for the $1 billion worth transaction, followed the consideration and adoption of the report of an ad hoc committee established to examine the transaction.
The committee was constituted by the Senate in December 2025 to review the modalities and contending issues surrounding the proposed acquisition.
Presenting the report during plenary, chairman of the ad hoc committee, Senator Abba Moro, said the transaction complied with all statutory requirements and due process procedures.
According to the committee’s findings, the acquisition conforms with existing Nigerian laws and does not pose any threat to the country’s economic interests.
The report noted that the deal is essentially a transfer of ownership between two foreign entities, explaining that both Lafarge and Huaxin’s parent company, Swiss-based Holcim, are foreign-owned organisations.
It stated: “The integration of foreign investment, through this transaction is viewed as an economic necessity and strategic initiative that aligns with national development goals.
“The concern, surrounding foreign ownership within the cement industry should not be a source of concern as Larfarge at the moment, currently holds approximately 18 percent of the market share.
“There is an assurance of stable employment for Nigerians in the transition period in line with directives, issued by the Federal Competition and Consumer Protection Commission (FCCPC), which also has been complied with, regarding the workforce of Larfarge.
“The transformation in question does not introduce a new scenario of foreign majority ownership, rather, it perpetuates an existing situation that has been a part of the market landscape where Holcim’s continued stake in this arrangement, through its partnership with Huaxin, brought for additional layers of corporate governance, which are recognised on global scale.”
The committee further observed that the transaction aligns with Nigeria’s long-standing policy of attracting Foreign Direct Investment (FDI) to support industrial growth and economic development.
It also assured that the 16.19 per cent stake currently held by Nigerian public investors would remain unaffected by the acquisition.
According to the report: “This means that the ownership and right associated with shareholding will stay unchanged and secured, ensuring that these investors continue to retain their interest in the company without any alteration or disruption, due to the ongoing transaction. This presupposes that their investments remain intact and protected throughout this process.”
Following the adoption of the report, the Senate urged all regulatory agencies involved in the transaction to sustain effective oversight and ensure continued compliance with relevant laws and regulations governing the acquisition.
(The Whistler)