Senate Approves $1bn Lafarge Sale to Chinese Firm, Giving Dangote, BUA Cement a Powerful New Rival
- Nigerian Senate approves $1 billion acquisition of Lafarge Africa by Huaxin Cement despite ownership concerns
- Senator Ningi demands clarity on Lafarge's shareholding before important foreign transaction endorsement
- Lawmakers call on Huaxin Cement to enhance corporate social responsibility in local communities during acquisition process
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Nigerian Senate has approved the proposed $1 billion acquisition of Lafarge Africa Plc by Chinese cement giant Huaxin Cement, clearing the way for a major shake-up in Nigeria's highly competitive cement industry.
The approval positions Huaxin as a formidable competitor to market leaders Dangote Cement and BUA Cement, although lawmakers raised concerns over unanswered questions surrounding Lafarge Africa's ownership structure before giving the transaction the green light.
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Senate gives conditional approval
The approval followed the presentation of a report by the Senate Ad Hoc Committee established to investigate the planned sale by Holcim AG, the Swiss parent company of Lafarge Africa.
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Presenting the report, the committee's chairman and Senate Minority Leader, Senator Abba Moro, said extensive consultations with key stakeholders found no legal obstacles to the acquisition.
He recommended that the transaction proceed, provided all regulatory requirements and existing Nigerian laws governing mergers and acquisitions are strictly observed.
According to a report by Daily Sun, the Senate also directed relevant regulatory agencies to maintain close oversight throughout the acquisition process to ensure full compliance with statutory provisions.
Lawmakers demand clarity on ownership
Despite endorsing the deal, the committee's report triggered debate after Senator Abdul Ningi questioned the ownership details presented to lawmakers.
According to Ningi, the report indicated that Nigerian interests, including the Federal Government and local investors, own about 16% of Lafarge Africa, while Holcim controls roughly 18%.
However, he noted that the report failed to explain who owns the remaining 66% of the company's shares.
The senator argued that lawmakers needed a complete picture of Lafarge Africa's shareholding before approving such a significant transaction.
He also dismissed claims that the deal amounted to the sale of a strategic Nigerian asset, insisting that it was essentially a transfer of ownership between two foreign companies.
According to him, greater transparency was necessary to determine whether Nigerians would ultimately benefit from the transaction.
Senate approves deal despite questions
Although concerns over the undisclosed shareholding structure were raised during deliberations, no additional clarification was provided on the Senate floor before lawmakers adopted the committee's recommendations.
The Senate subsequently approved the continuation of the $1 billion acquisition.
New owners urged to improve host communities
Several lawmakers used the debate to call on Huaxin Cement to strengthen relationships with communities where Lafarge Africa operates.
Former Gombe State governor Senator Danjuma Goje urged the incoming investors to prioritise corporate social responsibility (CSR), noting that Lafarge had fallen short of several commitments made to host communities in Gombe State.
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He called for stronger regulatory oversight to ensure the new owners fulfil their obligations and contribute more meaningfully to local development.
Similarly, Chairman of the Senate Committee on Capital Market, Senator Osita Izunaso, expressed confidence in the committee's findings, saying lawmakers had conducted a thorough review before recommending approval.
Senator Shuaib Salisu also backed the report, stating that all major stakeholders were adequately consulted during the review process.
With the Senate's approval, the acquisition is expected to proceed, subject to regulatory compliance, potentially reshaping competition in Nigeria's cement industry as Huaxin Cement prepares to challenge established players Dangote Cement and BUA Cement.
Lafarge proposes name change
Legit.ng earlier reported that Lafarge Africa Plc has announced plans to seek shareholder approval to change its corporate name to “HBM Nigeria Plc” at its 67th Annual General Meeting scheduled for April 30, 2026, in Lagos.
The disclosure was made in a filing with the Nigerian Exchange on Thursday, April 9.
The company stated that the proposed rebranding forms part of key resolutions to be considered at the meeting, alongside approval of audited financial statements, dividend declaration, and board restructuring.
Source: Legit.ng
