Nigerian Senate Approves $1 Billion Lafarge Africa Acquisition

The Senate of Nigeria approved the $1 billion acquisition of Lafarge Africa Plc by the Chinese firm Hainan Huaxin Pan-African Investment Company Plc. The deal involved the sale of an 83.81 percent controlling stake previously held by Swiss multinational Holcim as part of a global portfolio restructuring. A Senate Ad Hoc Committee, led by Senator Abba Moro, concluded the transaction posed no immediate national security risk and aligned with national policies to attract foreign direct investment.

Legislators conditioned the endorsement on strict compliance with Nigerian laws, including a guarantee of no staff retrenchments for at least two years and the protection of a 16.19 percent equity stake held by Nigerian public and institutional investors. While the Federal Competition and Consumer Protection Commission had previously granted regulatory clearance for the move, the Senate's endorsement aims to remove remaining uncertainty and bolster investor confidence in the manufacturing sector.

Despite the approval, some lawmakers raised transparency concerns. Senator Abdul Ningi questioned the lack of clarity regarding the ownership of approximately 66 percent of the company's shares, arguing that full disclosure is necessary to ensure Nigerians benefit from the sale. Deputy Senate President Barau Jibrin dismissed these objections, stating that additional information could be obtained through the Freedom of Information Act. Other senators urged the new owners to improve corporate social responsibility in host communities, specifically in Gombe State.