Shareholder Petitions SEC, Seeks The Break Up Of Dangote Cement Plc

*Writes SEC to Break up Dangote Cement Plc, accuses company
of Hindering Competition

The Securities and Exchange Commission (SEC) has received a
letter from one Ms Nnenna Dike Udensi, a shareholder of Cadbury
Nigeria Plc and FBN Holdings Plc listed on the Nigerian Stock
Exchange, requesting the Commission to exercise its powers to break
up Dangote Cement Plc into separate entities pursuant to Section
128 of the Investment and Securities Act, 2007.

The letter which was addressed to the Director General of SEC,
and signed by Nduka Enweliku on behalf of Stanford Legal, a law
firm based in Lagos, which is acting on behalf of Ms Nnenna Dike
Udensi raises alarm on anti-competition in the Cement Sector and
the Stock market occasioned by the dominance of Dangote Cement Plc
in the cement sector and the capital market contrary to the spirit
of the letters of the ISA 2007. According to the letter, the
request is necessary in interest of the public based on the present
controlling market share and size of the company whose business
practice substantially prevents or lessens competition in the
cement industry and the Stock market at large. The letter reveals
that because of the lack of competition engendered by the dominance
of Dangote Cement Plc, Nigeria is presently the country with the
highest price of cement in the world despite attaining
self-sufficiency in cement production which has propelled Dangote
Cement Plc to become one of the cement companies with the highest
profit margins in the world. This factor has made it impossible for
the Federal Government to attain its objective of closing the
housing gap in Nigeria which presently stands at over Seventeen
Million as the price of cement has contributed to the increased
cost of construction.

Thus, It is believed that the break up is imperative to stop
further substantial restraint of competition by Dangote Cement Plc
in the cement sector and the stock market as it is presently
cannibalising the cement sector, and the Stock Exchange; for as it
amasses economic power, it also acquires greater influence in the
cultural and intellectual life of the nation.

Dangote Cement Plc controls over sixty percent of the cement
market in Nigeria and its market capitalisation is over thirty
percent of the Nigerian Stock Exchange. This makes it the largest
cement company in Nigeria, as well as the largest single company on
the Nigerian Stock Exchange. This has led to an indiscriminate
exercise of the enormous powers that comes with its market share
and size. The company fixes the price of cement at will thereby
forcing its lesser competitors to tailor their pricing and business
decisions in line with the direction set by the company. Also, it
is near impossible for new cement companies to list their shares on
the Nigerian Stock Exchange as there is palpable fear that Dangote
Cement Plc would leverage its dominant position in the Stock Market
to frustrate the performance of their stocks.

The petitioner therefore believes that the breakup of Dangote
Cement Plc will make the economy more competitive in line with
global best practices.

*Writes SEC to Break up Dangote Cement Plc, accuses company
of Hindering Competition

The Securities and Exchange Commission (SEC) has received a
letter from one Ms Nnenna Dike Udensi, a shareholder of Cadbury
Nigeria Plc and FBN Holdings Plc listed on the Nigerian Stock
Exchange, requesting the Commission to exercise its powers to break
up Dangote Cement Plc into separate entities pursuant to Section
128 of the Investment and Securities Act, 2007.

The letter which was addressed to the Director General of SEC,
and signed by Nduka Enweliku on behalf of Stanford Legal, a law
firm based in Lagos, which is acting on behalf of Ms Nnenna Dike
Udensi raises alarm on anti-competition in the Cement Sector and
the Stock market occasioned by the dominance of Dangote Cement Plc
in the cement sector and the capital market contrary to the spirit
of the letters of the ISA 2007. According to the letter, the
request is necessary in interest of the public based on the present
controlling market share and size of the company whose business
practice substantially prevents or lessens competition in the
cement industry and the Stock market at large. The letter reveals
that because of the lack of competition engendered by the dominance
of Dangote Cement Plc, Nigeria is presently the country with the
highest price of cement in the world despite attaining
self-sufficiency in cement production which has propelled Dangote
Cement Plc to become one of the cement companies with the highest
profit margins in the world. This factor has made it impossible for
the Federal Government to attain its objective of closing the
housing gap in Nigeria which presently stands at over Seventeen
Million as the price of cement has contributed to the increased
cost of construction.

Thus, It is believed that the break up is imperative to stop
further substantial restraint of competition by Dangote Cement Plc
in the cement sector and the stock market as it is presently
cannibalising the cement sector, and the Stock Exchange; for as it
amasses economic power, it also acquires greater influence in the
cultural and intellectual life of the nation.

Dangote Cement Plc controls over sixty percent of the cement
market in Nigeria and its market capitalisation is over thirty
percent of the Nigerian Stock Exchange. This makes it the largest
cement company in Nigeria, as well as the largest single company on
the Nigerian Stock Exchange. This has led to an indiscriminate
exercise of the enormous powers that comes with its market share
and size. The company fixes the price of cement at will thereby
forcing its lesser competitors to tailor their pricing and business
decisions in line with the direction set by the company. Also, it
is near impossible for new cement companies to list their shares on
the Nigerian Stock Exchange as there is palpable fear that Dangote
Cement Plc would leverage its dominant position in the Stock Market
to frustrate the performance of their stocks.

The petitioner therefore believes that the breakup of Dangote
Cement Plc will make the economy more competitive in line with
global best practices.