Senate Probes Chinese Firm’s Acquisition Of 83% Stake In Lafarge Cement

The Senate has initiated investigation into the acquisition of 83. 81 percent of Lafarge Cement Plc by a Chinese firm, Huaxin Cement.

The decision was taken after a brief debate on a report submitted on Wednesday by the Senate Committee on Capital Market.

While presenting the report, the chairman of committee, Senator Osita Izunaso, said the process of acquisition of Lafarge by Huaxin Cement went through due process.

Izunaso said the transaction was supersived by the Bureau of Public Enterprises (BPE) and the Nigerian Stock Exchange.

He added that the process was closely monitored and scrutinised by the Federal Competition and Consumer Protection Commission (FCCPC).

The Nigerian public and local investors presently hold 16.19 percent of shares in Lafarge, as the majority shares previously held by a Swiss company, Holcim, had been acquired by Huaxin Cement.

The16.19 percent of shares owned by Nigerian investors are publicly traded on the Nigerian Stock Exchange (NGX) under the ticker symbol “WAPCO” (West African Portland Cement Company).

Following the acquisition, the rule requires Huaxin Cement to make a. Mandatory Tender Offer (MTO) to acquire the remaining outstanding shares from the public shareholders.

While the acquisition process is expected to be concluded by the last quarter of 2026, the Senate said the transaction required closer scrutiny, with a view to ensuring that the interests of Nigerian investors are protected.

While only a few of the senators, including Senator Orji Uzor Kalu backed the acquisition by the Chinese firm, many of the lawmakers kicked against it.

Arguing in favour of Huaxin Cement, Kalu said it’s a response to Nigeria’s quest for Direct Foreign Investment, stressing that foreign investors must be allowed to invest their funds in any business they choose to.

Other senators who aligned with Kanu’s position, pointed out that many local investors who acquired public owned businesses in Nigeria through the privitisation programme, ended up stripping such companies of valuable assets.

But the senators who voiced their objection to the deal, kicked against the 16.19 percent stake left for local investors, saying it’s grossly inadequate and must not be allowed to stand.

One of the vocal voices against the deal was Senator Solomon Adeola, who insisted that the transaction breached the Nigerian local content laws.

Owing to the deluge of opposition voices against the transaction, the President of the Senate, Godswill Akpabio, put the matter to voice vote as to whether to accept or reject the report on the recommendation by the Senate committee on Capital Market.

The senators overwhelmingly voted against the adoption of the report, demanding investigation into entire process leading to the acquisition by the Chinese fir.

The Senate consequently raised a six-member ad hoc committee to conduct further investigation into the transaction.

The ad hoc committee, chaired by Minority Leader, Senator Abba Moro, was mandated to conduct the investigation and submit a report within two weeks.
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