…as Senate pledges support for genuine foreign investors
Lafarge Africa PLC has restated to Nigerians that the offshore transfer of shareholding from Swiss multinational, Holcim, to China’s Huaxin Cement will bring substantial benefits to the Nigerian economy.
This statement was made during a Senate hearing last week where the company addressed concerns over transparency, national sovereignty, and job losses in light of the transaction.
The Senate had summoned Lafarge Africa following the announcement of Holcim’s plan to divest its 83.81% indirect stake in Lafarge Africa PLC.
Lolu Alade-Akinyemi, Lafarge Africa’s CEO, at the hearing, emphasised that the transaction was an entirely offshore realignment, where Holcim would be transferring its 83.81% ownership in Lafarge Africa via an indirect transfer of foreign holding companies to Huaxin Cement.
He explained, “Crucially, Holcim will retain a significant 41.81% interest in Huaxin, positioning it as the largest shareholder with ongoing governance rights and collaborative efforts.
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“Our valued Nigerian public investors continue to hold 16.19% shareholding in Lafarge Africa during this transaction. This realignment is a part of Holcim’s global portfolio strategy, and Holcim will continue to hold a significant beneficial interest in Lafarge Africa via its stake in Huaxin.”
The company emphasised that the transition does not signify a fundamental shift in Lafarge Africa’s character, which has been foreign-owned for over two decades, underscoring Nigeria’s attractiveness to foreign investment.
The narrative of “new foreign control” was clarified as inaccurate, given Holcim’s continued beneficial interest.
“As an organisation, we will continue to respect the mandates of the Nigerian regulators and ensure full cooperation,” he added.
The proposed investment by Huaxin in Lafarge Africa is poised to positively contribute to Nigeria-China economic ties, aligning with the current administration’s initiatives for deeper economic cooperation and strategic investments.
Huaxin has expressed clear plans for capacity expansion and its decision to make such a substantial investment signals strong confidence in Nigeria’s economic potential and its strategic importance as a key market in Africa.
Osita Izunaso, the Chairman of the Committee, said, “While we are still understanding the broader implications of the deal, we are not opposed to foreign investments that follow due process and contribute meaningfully to national development.
“We are not against foreign investors, our priority is to ensure that Nigeria’s strategic interests, workers’ rights, and local investors are protected.”
The Senate’s final report on the matter is expected in the coming weeks as it continues consultations with regulatory agencies and stakeholders.
