A Federal High Court sitting in Ikoyi, Lagos, has dismissed a preliminary objection filed by Lafarge Africa Plc in a lawsuit challenging the cement giant's proposed sale of majority shares to Chinese firm Huaxin Cement Limited.

Justice Lewis Allagoa, in his ruling on Thursday, rejected Lafarge's motion to strike out the case for lack of jurisdiction, stating clearly that "The 1st and 2nd defendants' motion objecting to the Court's jurisdiction is hereby dismissed."

The lawsuit was instituted by Strategic Consultancy Limited, a Nigerian company and minority shareholder in Lafarge, contesting the planned sale of 83.81% of Lafarge's shares currently held by Holcim Group to Huaxin Cement, a company based in China.

According to court documents, the plaintiff alleges that the transaction was conducted secretly without the knowledge or involvement of minority shareholders, thereby violating provisions of the Companies and Allied Matters Act (CAMA) 2020, the Securities and Exchange Commission Act, and the Nigerian Investment Promotion Act.

"The purported sale was done surreptitiously and without affording Strategic Consultancy Limited and other minority shareholders the opportunity to acquire the shares," the plaintiff stated in its originating summons.

Strategic Consultancy Limited, represented by senior advocate Dr. D.A. Awosika (SAN), further argued that Huaxin Cement is not registered in Nigeria, making the transaction unlawful under Nigerian regulations.

Lafarge, represented by Babatunde Fagbohunlu (SAN), and Holcim Group, represented by Uzoma Azikiwe (SAN), had urged the court to dismiss the case, claiming it lacked jurisdiction to entertain the matter. However, Justice Allagoa disagreed with their submission.

In a related development, the judge granted the plaintiff's request to join Caricement BV (Netherlands) and Associated International Cements Ltd (England) as 5th and 6th defendants respectively, as they were identified by the respondents as the actual shareholders involved in the transaction.

"It is hereby ordered that the persons sought to be joined herein and hereby joined as prayed, and leave to issue and serve the Originating Summons out of jurisdiction is hereby granted," Justice Allagoa ruled.

The case has been adjourned to June 11, 2025, for further proceedings. This ruling represents a significant legal setback for Lafarge Africa in its plans to transfer majority ownership to the Chinese cement manufacturer.