Nigeria's cement industry is set for a major shake-up as Chinese-backed Hainan Huaxin Cement moves to acquire Lafarge Africa in a deal valued at about $1 billion, positioning itself to challenge market leaders Dangote Cement and BUA Cement in Africa's largest economy.
The upper legislative chamber endorsed the transaction on Thursday after adopting the report of its ad hoc committee chaired by Senate Minority Leader Abba Moro, concluding a seven-month review of the proposed sale by Swiss building materials giant Holcim AG.
Lawmakers said the acquisition would not affect the 16.19% equity stake held by Nigerian investors, addressing one of the key concerns raised when Holcim announced plans to divest its controlling interest in Lafarge Africa.
The approval clears the way for one of China's most significant investments in Nigeria's manufacturing sector and places a Chinese-backed company alongside industry leaders Dangote Cement and BUA Cement in a market central to the country's infrastructure and housing ambitions.
A new ownership era for Nigeria's cement industry
