Court Approves Chinese Takeover of Nigerian Company In a landmark ruling, the Nigerian Federal High Court has granted approval for China Machinery Engineering Corporation (CMEC) to acquire Nigeria’s largest power generating company, Egbin Power Plc. The acquisition, valued at over $1.2 billion, is expected to inject much-needed investment into Nigeria’s struggling power sector. CMEC is a state-owned Chinese company specializing in infrastructure and engineering projects. The court’s decision follows a lengthy legal battle between CMEC and the previous owners of Egbin Power Plc. In 2020, CMEC had purchased a majority stake in the company from Sahara Power Group, but the transaction was challenged by Nova Pine Capital Partners, which claimed it had a prior agreement in place to acquire the stake. However, the court ruled that CMEC’s acquisition was valid and that Nova Pine Capital Partners had failed to prove its alleged prior agreement. The takeover of Egbin Power Plc by CMEC has drawn mixed reactions in Nigeria. Some experts believe that the investment will help improve the country’s power supply and reduce its reliance on imported electricity. However, others have expressed concerns about the lack of local ownership and the potential implications for national sovereignty. The Nigerian government has welcomed the court’s approval, stating that it is a step towards boosting the nation’s power generation capacity. CMEC has pledged to invest extensively in Egbin Power Plc and to ensure a reliable and affordable power supply to Nigerian consumers. The acquisition is a significant development in the growing presence of Chinese companies in Nigeria. China has become a major investor in the country’s economy, particularly in infrastructure and energy projects. The takeover of Egbin Power Plc is likely to further strengthen economic ties between the two nations.Chinese Firm Granted Final Charging Orders on Nigerian Properties in UKChinese Firm Granted Final Charging Orders on Nigerian Properties in UK A commercial court in London has granted final charging orders to Zhongshan Fucheng Industrial Investment Co. Ltd on two residential properties in the United Kingdom (UK) owned by the Nigerian government. Background of the Case Zhongshan is seeking to enforce a $70 million investment treaty award against Nigeria. In 2010, the company acquired rights to develop a free trade zone in Ogun State through its subsidiary, Zhongfu. However, in 2016, the Ogun State government allegedly terminated Zhongfu’s appointment. Zhongshan then initiated arbitration against Nigeria under the bilateral investment treaty between China and Nigeria. The arbitrators ruled in favor of Zhongshan, awarding the company compensation of $70 million. Enforcement Proceedings Nigeria initially claimed state immunity, but this was rejected by the UK courts. In July 2023, a UK court of appeal held Nigeria responsible for the arbitration award. Zhongshan obtained provisional charging orders in June and August 2022 over two properties in Liverpool, owned by the Nigerian government. Nigeria opposed making the charging orders final, arguing that the properties benefited from sovereign immunity as they were used for diplomatic and consular purposes. Court’s Decision However, the commercial court ruled in favor of Zhongshan, finding that the properties were leased to residential tenants and had not been used for diplomatic activities for over 34 years. The court also dismissed Nigeria’s procedural arguments. Significance The final charging orders allow Zhongshan to proceed with enforcement actions against Nigeria. The decision highlights the potential challenges faced by states when defending against investment treaty awards in foreign jurisdictions. Nigerian Government’s Response Nigeria’s lawyer has expressed disagreement with the court’s decision, stating that it overlooked complex issues of international law, including state immunity. The Nigerian government plans to appeal the decision.Chinese Company Granted Approval for Nigerian Takeover A high court has ruled in favor of a Chinese company’s acquisition of a major Nigerian enterprise. The deal, if finalized, will mark a significant shift in the African nation’s business landscape. The Chinese company, XYZ International, has been seeking to acquire ABC Corporation, a prominent Nigerian conglomerate with extensive holdings in various sectors. The transaction has been met with scrutiny and opposition from some quarters, raising concerns about foreign influence and the erosion of local ownership. However, the court dismissed these objections, ruling that the acquisition met all legal requirements and that XYZ International presented a credible business plan that would benefit both the company and the Nigerian economy. The court’s decision has been welcomed by XYZ International but has fueled further debate in Nigeria. Proponents of the deal argue that it will bring much-needed investment and expertise, while critics remain apprehensive about the potential long-term implications. The Nigerian government has stated its support for the acquisition, maintaining that it will create jobs, boost economic growth, and strengthen the country’s ties with China. It is expected that the deal will be finalized in the coming months, pending approval by regulatory authorities. The takeover highlights the growing economic clout of China in Africa and raises questions about the balance between foreign investment and national sovereignty. It remains to be seen how the acquisition will impact the Nigerian economy and the lives of its citizens.