Senate Approves $1bn Lafarge Acquisition By Chinese Firm
Senate has approved the proposed $1 billion acquisition of Lafarge Africa Plc by Chinese firm Huaxin, concluding that the transaction poses no threat to Nigerian shareholders or the country’s regulatory framework.
Gatekeepers News reports that the approval followed the adoption of the report of an ad hoc committee set up to investigate the deal after concerns were raised over its implications for Nigeria’s cement industry and local investors.
Presenting the committee’s findings during plenary, Senate Minority Leader Abba Moro said the panel engaged key stakeholders, including the Securities and Exchange Commission (SEC), the Bureau of Public Enterprises (BPE), the Corporate Affairs Commission (CAC) and Lafarge Africa’s management. He said the investigation found no legal or regulatory obstacle to the transaction and recommended that it proceed under existing Nigerian laws.
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The committee also confirmed that the proposed sale would not affect the 16.19 per cent equity owned by Nigerian investors. During the probe, the BPE explained that the shares being divested belong to Holcim AG, the Swiss parent company, while the SEC disclosed that it had not received a formal filing on the sale but had only been notified of an internal restructuring by Holcim.
Following the review, lawmakers endorsed the acquisition, stressing that regulatory agencies should continue to monitor the transaction to ensure full compliance with Nigerian laws and protect the interests of local investors.
Source:Gatekeepers
