Whale Rock Cement seeks to acquire Schwenk Namibia, which holds a dominant 69.83% in Ohorongo Cement. The acquisition, submitted to the NCC, would allow Whale Rock Cement full control over cement production in Namibia. The company has expressed confidence in Namibia’s regulatory environment and has a history of investments in the country. Past attempts to acquire Ohorongo Cement have faced challenges due to regulatory scrutiny.
Whale Rock Cement, the parent company of Cheetah Cement, has submitted a notice to acquire Schwenk Namibia, which controls a majority stake in Ohorongo Cement. Filing with the Namibian Competition Commission (NCC) occurred on February 17, and if approved, this acquisition will grant Whale Rock Cement full control over cement production within Namibia.
The acquisition will involve Whale Rock Cement purchasing the complete issued share capital of Schwenk Namibia from SCHWENK Zement International GmbH & Co. KG. Currently, Schwenk Namibia owns 69.83% of 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 has operated since its establishment in 2007 and commenced production in December 2010.
In addition to producing and supplying cement under the Ohorongo brand, the company is committed to finding alternative energy sources. Through its subsidiary, Energy for Future (Pty) Ltd, Ohorongo Cement transforms biomass from scrub encroachment into energy for its production processes.
Whale Rock Cement expressed a strong belief in Namibia’s regulatory framework, stating, “The fact that we decided to open our factory in Namibia is a demonstration of the confidence we have in the country and its regulatory framework. We believe Namibia stands heads above many African countries as far as offering an environment conducive for investment.”
Since its establishment of a cement factory near Otjiwarongo in April 2018, Whale Rock has prepared to enter the Namibian market. This acquisition bid is not the first for Ohorongo Cement; in 2019, an attempt by Singapore-listed International Cement Group Limited to acquire it for N$1.5 billion failed to materialize. Additionally, a merger between Schwenk Namibia and West China Cement in 2020 faced blockage due to concerns over collusion.
In 2024, a merger involving Schwenk and RWCo GmbH was approved with conditions but was later abandoned due to perceived burdensome requirements. The NCC has invited public feedback on the proposed acquisition, encouraging stakeholders to express any concerns regarding the transaction. The NCC reassured confidentiality in the review process of submissions.
The proposed acquisition of Schwenk Namibia by Whale Rock Cement signifies a significant shift in the ownership and control of the cement industry in Namibia. If the NCC approves this filing, Whale Rock Cement will consolidate its influence in the market. In light of past acquisition attempts and regulatory concerns, Stakeholder feedback plays a pivotal role in ensuring a transparent process. Overall, this acquisition could impact the competitiveness and regulatory landscape of the Namibian cement sector.
Original Source: www.observer24.com.na
