Senate Probes Lafarge’s 83.8% Share Divestment: Rising Concerns Over Chinese Takeover in Cement Sector
Detailed Breakdown of the News:
1. Senate Raises Alarm on Strategic Asset Control
The Nigerian Senate has summoned Lafarge Africa Plc to clarify its proposed divestment of 83.8% majority shares, sparking fears of increasing foreign dominance—particularly by Chinese interests—in Nigeria’s vital cement industry. The summons follows a Senate resolution passed on March 27, 2025.
2. Scrutiny on Alleged Sale to Chinese Investors
The Senate Committee on Capital Market, led by Senator Osita Izunaso (APC, Imo West), convened an investigative session with key regulators to probe the proposed transaction. The committee is particularly concerned that the majority shares might be acquired by Huaxin Cement Co. Ltd, a Chinese conglomerate.
3. SEC: No Formal Sale Application Yet
The Securities and Exchange Commission (SEC), represented by Mr. Abdulkafir Abbas, disclosed that no formal sale application has been filed. He clarified that while Holcim Group (Lafarge’s Swiss parent company) is undergoing internal restructuring, no change in beneficial ownership has occurred.
4. Internal Share Transfer Among Foreign Entities
As part of the restructuring, a 27.77% equity stake held by Associated International Cement Limited was shifted to Davis Peak Holdings Limited—both subsidiaries of Holcim. SEC emphasized this move doesn’t alter the ultimate control of Lafarge Africa.
5. BPE: Nigerian Public Shares Are Safe
The Bureau of Public Enterprises (BPE), represented by Satura Bello, reassured Nigerians that the 16.19% shares owned by Nigerian public investors remain untouched. She clarified that the shares being divested are from Holcim’s foreign-held interests and are not part of the post-privatisation local holdings.
6. FCCPC Confirms Merger Notification
The Federal Competition and Consumer Protection Commission (FCCPC) confirmed it received a merger notification in December 2024 from Huaxin (Hong Kong) International Holdings Ltd and Hainan Huaxin Pan-African Investment Co. Ltd. These entities intend to acquire Lafarge’s shares indirectly through Caricement B.V. and Davis Peak Holdings Ltd.
7. Transaction Classified as ‘Foreign-to-Foreign’
According to FCCPC, this deal is categorized as a “foreign-to-foreign” merger, meaning it doesn’t directly affect Nigeria’s competitive landscape. They stated that the transaction is a reassignment of foreign control rather than an introduction of new ownership.
8. Job Security Reassured Amid Union Concerns
FCCPC disclosed that the Chinese acquiring parties have pledged no job losses, addressing fears raised by Lafarge Africa’s workers’ unions.
9. Lawmakers Push for Further Clarity
Despite these explanations, the Senate remains vigilant. The Committee has directed the Corporate Affairs Commission (CAC) to clarify if Lafarge’s Articles of Association allow such a significant divestment without national consultation.
10. Senate Emphasizes Protection of National Interest
Senator Izunaso stressed the need to guard against losing strategic national assets to foreign interests without transparency. Lafarge Africa has been mandated to appear before the Committee to answer questions on ownership structure, national interest, and operational continuity.
Detailed Breakdown of the News:
1. Senate Raises Alarm on Strategic Asset Control
The Nigerian Senate has summoned Lafarge Africa Plc to clarify its proposed divestment of 83.8% majority shares, sparking fears of increasing foreign dominance—particularly by Chinese interests—in Nigeria’s vital cement industry. The summons follows a Senate resolution passed on March 27, 2025.
2. Scrutiny on Alleged Sale to Chinese Investors
The Senate Committee on Capital Market, led by Senator Osita Izunaso (APC, Imo West), convened an investigative session with key regulators to probe the proposed transaction. The committee is particularly concerned that the majority shares might be acquired by Huaxin Cement Co. Ltd, a Chinese conglomerate.
3. SEC: No Formal Sale Application Yet
The Securities and Exchange Commission (SEC), represented by Mr. Abdulkafir Abbas, disclosed that no formal sale application has been filed. He clarified that while Holcim Group (Lafarge’s Swiss parent company) is undergoing internal restructuring, no change in beneficial ownership has occurred.
4. Internal Share Transfer Among Foreign Entities
As part of the restructuring, a 27.77% equity stake held by Associated International Cement Limited was shifted to Davis Peak Holdings Limited—both subsidiaries of Holcim. SEC emphasized this move doesn’t alter the ultimate control of Lafarge Africa.
5. BPE: Nigerian Public Shares Are Safe
The Bureau of Public Enterprises (BPE), represented by Satura Bello, reassured Nigerians that the 16.19% shares owned by Nigerian public investors remain untouched. She clarified that the shares being divested are from Holcim’s foreign-held interests and are not part of the post-privatisation local holdings.
6. FCCPC Confirms Merger Notification
The Federal Competition and Consumer Protection Commission (FCCPC) confirmed it received a merger notification in December 2024 from Huaxin (Hong Kong) International Holdings Ltd and Hainan Huaxin Pan-African Investment Co. Ltd. These entities intend to acquire Lafarge’s shares indirectly through Caricement B.V. and Davis Peak Holdings Ltd.
7. Transaction Classified as ‘Foreign-to-Foreign’
According to FCCPC, this deal is categorized as a “foreign-to-foreign” merger, meaning it doesn’t directly affect Nigeria’s competitive landscape. They stated that the transaction is a reassignment of foreign control rather than an introduction of new ownership.
8. Job Security Reassured Amid Union Concerns
FCCPC disclosed that the Chinese acquiring parties have pledged no job losses, addressing fears raised by Lafarge Africa’s workers’ unions.
9. Lawmakers Push for Further Clarity
Despite these explanations, the Senate remains vigilant. The Committee has directed the Corporate Affairs Commission (CAC) to clarify if Lafarge’s Articles of Association allow such a significant divestment without national consultation.
10. Senate Emphasizes Protection of National Interest
Senator Izunaso stressed the need to guard against losing strategic national assets to foreign interests without transparency. Lafarge Africa has been mandated to appear before the Committee to answer questions on ownership structure, national interest, and operational continuity.