…As BPE assures Nigerians their 16.19% stake remains untouched
The Senate has summoned Lafarge Africa Plc to appear before its Committee on Capital Market over the company’s planned divestment of 83.8% of its majority shares an action that has stirred national concern about foreign control in Nigeria’s strategic cement industry.
The summons, which follows a resolution by the Senate on March 27, 2025, is aimed at probing deeper into the company’s alleged plans to sell its controlling stake to Chinese investors.
This development comes amid growing scrutiny of foreign mergers and acquisitions within Nigeria’s critical sectors.
The Senate Committee, chaired by Senator Osita Izunaso (APC, Imo West), convened an interactive session on Wednesday with key regulatory agencies, including the Securities and Exchange Commission (SEC), Bureau of Public Enterprises (BPE), and the Federal Competition and Consumer Protection Commission (FCCPC), to unravel the layers surrounding the proposed transaction.
In its submission, the SEC clarified that no formal application has been received regarding a proposed sale of Lafarge Africa Plc to Chinese investors.
Representing the Director General of SEC, Emmanuel Agama, Mr. Abdulkafir Abbas explained that while the Commission was aware of an internal restructuring within the Holcim Group; the Swiss parent company of Lafarge Africa, there was no change in the beneficial ownership of shares.
He stated, “As part of the internal restructuring, the 27.77% equity stake held by Associated International Cement Limited was transferred to another Holcim-owned entity, Davis Peak Holdings Limited. There has been no change in the ultimate ownership.”
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Reinforcing this stance, Satura Bello, Director of Post Transaction at the BPE, assured the Senate that the 16.19% of Lafarge shares held by Nigerian public investors remains intact and untouched.
She explained that the shares involved in the divestment are from Lafarge Africa’s parent holding entities and not part of the local holdings or interests safeguarded for Nigerian citizens during the privatisation of government-owned cement firms in the early 2000s.
The FCCPC also weighed in, confirming receipt of a merger notification in December 2024 from the acquiring parties, Hainan Huaxin Pan-African Investment Co. Ltd and Huaxin (Hong Kong) International Holdings Ltd, both subsidiaries of China’s Huaxin Cement Co. Ltd.
According to FCCPC, the acquisition would involve the indirect purchase of Lafarge Africa’s 83.81% shareholding through the takeover of two foreign entities: Caricement B.V and Davis Peak Holdings Limited.
However, the FCCPC noted that this transaction constitutes a “foreign-to-foreign” merger and does not alter Lafarge Africa’s operational dynamics in Nigeria.
“There is no impact on the competitive landscape of Nigeria’s cement market. The transaction does not introduce new foreign ownership, but rather represents a transfer of existing foreign control from one international entity to another,” Bello explained.
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The FCCPC also confirmed that it has obtained assurances from the acquiring firms that there would be no job losses at Lafarge Africa, following concerns raised by employee unions.
Despite these reassurances, the Senate remains cautious.
The Committee directed its Clerk to write to the Corporate Affairs Commission (CAC) for clarification on Lafarge’s Articles of Association and the extent to which it permits such divestments without prior national consultation.
The lawmakers are determined to ensure the protection of Nigeria’s economic sovereignty and prevent strategic national assets from falling into foreign hands without due process.
Senator Izunaso emphasized, “We must remain vigilant and ensure that such critical assets do not slip out of our regulatory radar. The interest of the Nigerian people must remain paramount.”
Lafarge Africa Plc is expected to appear before the Committee in the coming days to provide further details on the transaction and respond to questions on transparency, national interest, and future control of the company.
