The Senate on Thursday approved the proposed acquisition of Lafarge Africa Plc by Hainan Huaxin Pan-African Investment Company Plc, assuring Nigerians that the 16.19 per cent equity held by local investors in the cement company would remain protected.
The approval followed the adoption of the report of an ad hoc committee chaired by Abba Moro, the Mnority keader which was set up to investigate the proposed transaction after concerns were raised over Lafarge Africa’s ownership structure and the implications of the sale.
In approving the deal, the Red Chamber directed that the acquisition must comply strictly with due process and all applicable Nigerian laws.
It also urged the Securities and Exchange Commission (SEC), Corporate Affairs Commission (CAC), Federal Competition and Consumer Protection Commission (FCCPC), Nigerian Investment Promotion Commission (NIPC) and the Bureau of Public Enterprises (BPE) to maintain close regulatory oversight throughout the process.
Presenting the report, Moro said much of the controversy surrounding the transaction stemmed from the mistaken belief that Lafarge Africa was a wholly Nigerian-owned company.
