Whale Rock Cement plans to acquire Schwenk Namibia, a majority stakeholder in Ohorongo Cement, with plans filed with the NCC. If approved, Whale Rock will control cement production in Namibia. Previous acquisition attempts by Asian firms have not succeeded due to regulatory issues. The NCC is seeking public feedback on this transaction to maintain competitive fairness.
Whale Rock Cement, which oversees Cheetah Cement, has submitted a notice to acquire Schwenk Namibia, a majority stakeholder in Ohorongo Cement. This proposed transaction has been filed with the Namibian Competition Commission (NCC) as of February 17. If it receives approval, Whale Rock Cement will exert complete control over cement production in Namibia.
The acquisition entails Whale Rock Cement purchasing the entire issued share capital of Schwenk Namibia from SCHWENK Zement International GmbH & Co. KG. Schwenk Namibia currently owns a 69.83% stake in Ohorongo Cement, while the remaining shares are distributed among Industrial Corporation South Africa (14.27%), Development Bank of Namibia (11.73%), and Development Bank of Southern Africa (4.17%).
Ohorongo Cement, established by the Schwenk Group in 2007, began its production in December 2010. The company not only manufactures cement under its brand but also seeks alternative energy solutions. Its subsidiary, Energy for Future (Pty) Ltd, works to reduce scrub encroachment on farms, converting biomass into energy for its cement production processes.
Recently, Whale Rock Cement expressed its confidence in Namibia’s regulatory system, stating that the establishment of its factory in Namibia demonstrates trust in the country’s environment for business. “We believe Namibia stands heads above many African countries as far as offering an environment conducive for investment,” Whale Rock noted.
Whale Rock inaugurated its cement factory near Otjiwarongo in April 2018. Previous attempts by Asian companies to acquire Ohorongo Cement, such as a N$1.5 billion bid from International Cement Group Limited in 2019, have not succeeded. Additionally, in 2020, a merger proposal between Schwenk Namibia and West China Cement faced regulatory challenges regarding collusion among leading cement producers.
A merger between Schwenk and RWCo GmbH was approved in 2024 but was abandoned due to undue conditions for local ownership. The NCC is currently seeking public input on Whale Rock’s acquisition to ensure that fair competition is maintained. Stakeholders can submit their concerns via the NCC’s official website to ensure their feedback is confidentially reviewed.
Whale Rock Cement is seeking to acquire Schwenk Namibia, aiming to take full control of cement production in Namibia. This transaction, if approved by the NCC, highlights Whale Rock’s confidence in the Namibian regulatory framework. Historically, previous attempts by Asian companies to acquire Ohorongo Cement faced regulatory and market challenges, leading to the current public input solicitation by the NCC to address fair competition concerns regarding this merger.
Original Source: www.observer24.com.na
