Huaxin Cement plans to spend USD160 million to purchase cement factories in Zambia and Malawi to expand its presence in Africa, the company said today.
Unit Huaxin Hainan Investment will buy a 75 percent stake in Lafarge Zambia from French cement maker Financière Lafarge, which happens to be a major shareholder in Huaxin through its subsidiary Dutch finance firm Holchin, for USD112.5 million, it said.
It will also make compulsory cash offers to public stakeholders to buy up the remaining 25 percent equity.
Huaxin is also willing to shell out USD10 million to purchase Pan African Cement from Lafarge Cement Malawi.
In all, it is prepared to invest USD160 million.
The deal, which is still subject to approval by authorities, would give Wuhan, central Hubei province-based Huaxin an additional output of 1.75 million tons of cement a year in the two countries.
It can further increase cement production through the limestone resources the two firms own, it added.
Lafarge Zambia operates two cement plants with an annual output of 1.5 million tons, it said.
Lafarge Cement Malawi has a cement grinding mill with a yearly capacity of 250,000 tons.
Oh no let government step in and start operations and sell cement to China
GOVERNMENT CANNOT RUN ELECTIONS PROPERLY
NOW YOU WANT THEM TO TRY AND RUN A LARGE COMPANY ???
BLOG ME IN 25 YEARS
China slowly but surely buying off all strategic assets by the time the African wakes up they will have nothing…they will loan you money to build then use their cement!!
Then some foool will say infrastructure development!!
zambia the china provice….
Welcome to Chambia the southern most province of china
Here is the secret folks: wealth is how many times your coins bounce within a community! FFS stop selling stuff anyhow. See how you can empower your LOCALS do that shtink!
Next will hear China offers to buy
Zambia at xyz millions.
My comment is awaiting moderation
Now Chin-a will give EXIM Bank loans with zero benefit to local construction industry…very shortsighted African politicians.
LT stop moderating my comments remove the word Ch.in.a from your red flag words
It will be irresponsible if the government allow China to buy the company. This is a company where Zambians should be allowed to have shares and the company should be run profitably. There is nothing too difficult to produce or manufacture cement. If Zambians cannot own a company like Cement industry, then the is no hope for Zambia. Zambia would be like Sri Lanka or Djibouti in Africa. Zambia seems to be heading there because we are failing to service the loans.
A Chinese subsidiary of Lafarge is buying Lafarge Zambia and Malawi from Large and the minority stakeholders. It is a smart way Lafarge France is removing itself from direct management of Lafarge Zambia and Lafarge Malawi, while acquiring more shares from the same companies through its Chinese subsidiary. One just hopes that, should this transaction be allowed to go through, the ‘new Chinese owners’ will not neglect to follow the Zambian labour laws.
THERE ARE A BU*NCH OF I-D-10-TS RUNNING LT
No big change. Lafarge is to continue in disguise. As article says, Lafarge is the major owner of the Chinese company. So it is selling company to itself and then change the name. Globalization tactics to fool the unsuspecting
1994, Chilanga Cement was privatised to CDC ( Colonial Development Company). By mid 2001, CDC had sold Chilanga to Lafarge (later changed to LarfargeHolcim in 2015).
If two private companies, Huaxin Cement (China) and LafargeHolcim (Switzerland), decide to exchange ownership Zambia should have a say to stop them?
2009, Sinoma (Chinese) pumped USD228m into Nigerian owned Dangote to build on Zambian and Senegalese soil several cement plants.
Glencoe abandoned Mopani and the State chipped in to save jobs. At privatisation, the Chinese bought NFC in Chambishi, and developed Mukulumpe Mine near Kitwe/Mufulira Road. It is a success story.
Let’s not be too, overly, apprehensive when it comes to Chinese investments in Zambia. Is it because of Wuhan Province?
That is so cheap! I could win the lottery and buy such a big company in my name. Wow! Zambia being sold on the cheap again. $160m is peanuts considering it’s between Malawi and Zambia. We’ll probably get $30m from
the deal if we are lucky. Bye bye building Zambia as cement will be exported to richer economies for more money leaving us resorting to red mud for mortar. Sad!
Too cheap, Dangote invested 400 million dollars in the Ndola cement plant. Lafarge selling to lafarge.
for a small sum of 160. awe sure. a small sum of 160..how much will chinese firm make from these two plants over the next say 15 years.?
Quality control is at stake.
I am sure Dangote and Zambezi portland are laughing.
Some people here are blogging as if Government is privatizing Lafarge: Chilanga Cement was privatized a long time ago. This is private to private transaction.
The Zambian Technocrats have been disappointing in a way. If Govt. purchased these cement plants production would plumet and we will start crying. Let those that have money and can operate these things profitably do that. Otherwise we are going to have nepotism, employing unqualified cousins. Very sad indeed. We need to pull up our socks to manage our economy through manufacturing and mining. Fifty five years after independence we must be running a good number of our own economic activities.
NOT ONE OF YOU CAN SEE THE BIG PICTURE
THE CHINKS IN AFRICA IS PURE AND SIMPLY TO DEGRADE THE WESTS SUPREMCY
NOTHING ELSE
We have concentrating on internal infighting criticizing PF forgetting to do checks and balances again someone making money and we just sitting….Competition Commission also weak, Trade & Industry absolutely weak….Anyone will buy and sell in Zambia no protection of industries
PF ECONOMIC SABOTAGE IN FULL SWING.
WHY ARE THESE CHINESE COMPANIES IN A RUSH TO BUY, WHAT’S GOING ON. WHO IS SPONSORING THEM?
@Lincoln
One wonders why a company sells another, especially within the same
The are so many reasons for selling your shares to your MINORITY or MAJORITY shareholders.
If a firm buys 75% stock, it means it gets 75% of the assets; but buying 75% of the assets won’t practically translate in buying any of the stock.
A firm may sell “majority” to become “minority” to retain/maintain investment, but reduce pressure of company decision making to promote background activities.
Recapitalisation and growing the capital are some reasons for selling while the buyer gets immediate business control. Chinese are very patient investors. A big lesson is that Communism can ran side by side with Capitalism.
The story above is very confusing China’s Huaxin is buying off Lafarge Lafarge is already a major shareholder in Huaxin. Who is buying who?
Why are people getting their knickers twisted on a book transaction? Zambians please get a life!!
My point here the level of competition in the Construction and Materials supply especially looking at the recent Intervention by the Consumer and Competition commission Some of these acquisitions must be approved having looked at the strategic nature of the cement Industry and levels of competition and related parties These parties are selling similar product in cement with similar pricing model and cost strategies and structure facing a weaker local consumer So The collusive nature of these companies and the competition index will be very critical However thus said this Acquisition will be better and add more productivity and synergistic effect in the…
in the Construction sector with proper monitory and participation share by Government Analysis of the Companies and Competition Index and pricing strategy will even gen interesting .Its better acquisition in terms of Capital and economies of scale that will add to productivity but also having a balance of regions and promoting home participation of significant stage like what we have seen good in macopolo will add move value to Zambia in moderating its terms of trade or Composure of its exports and imports No one can refuse that capital but securing the interest of the country and its people will be better for the long-term So taking a long-term significant interest…