The senate has cleared the proposed $1 billion acquisition of Lafarge Africa Plc by Hainan Huaxin Pan-African Investment Company Plc, a Chinese organization.
The senate disclosed that the sale will not affect the 16.19 percent equity held by Nigerian investors.
The upper legislative chamber gave approval to the transaction on Thursday after adopting the report of its ad hoc committee chaired by Abba Moro, senate minority leader.
The committee was constituted seven months ago to probe the proposed sale by Holcim AG, the Swiss building materials company, following concerns about Lafarge Africa’s ownership structure and the implications of the deal.
Presenting the report, Moro stated that the committee had engagement with relevant stakeholders and found no legal impediment to the acquisition.
He recommended that the senate allow the transaction to proceed, subject to strict compliance with Nigerian laws and continued regulatory oversight.
“The senate allowed the transaction process concerning the sale of Lafarge Cement Company Plc to Huaxin to scale through,” he said.
“However, all due processes and strict compliance with all Nigerian extant laws on the subject must be followed and adhered to strictly for a hitch-free transaction and transition process.”
The committee also appealed to regulatory agencies, including the Securities and Exchange Commission (SEC), Corporate Affairs Commission (CAC), Federal Competition and Consumer Protection Commission (FCCPC), Nigerian Investment Promotion Commission (NIPC) and Bureau of Public Enterprises (BPE), to maintain rigorous oversight of the transaction.
The committee further recommended that the new investors strengthen their corporate social responsibility (CSR) programmes in host communities.
It added that the transaction would not diminish or alter the rights of Nigerian shareholders, whose 16.19 percent equity stake in the company would remain intact.
