Ohorongo Cement sale blocked by competition commission

The Namibian Competition Commission has reportedly blocked the NAD1.5bn (US$86.67m) sale of Schwenk Namibia, which manages and owns 69.8 per cent of Ohorongo Cement, to West China Cement, according to The Namibian.

"The Namibian Competition Commission [has] made a decision to prohibit the acquisition of Schwenk Namibia (Pty) Ltd by West China Ltd due to the fact that it would result in coordination between Ohorongo Cement (Pty) Ltd and Whale Rock Cement," said notes on the decision.

The commission noted that entering the cement industry is a challenge and the merger would make it more difficult for a Namibian company to enter the sector. It also marks the second time that the acquisition of Schwenk Namibia by a foreign investor has fallen through.

"Given the relationship between Whale Rock Pty Ltd and the acquiring group, the implementation of the proposed merger will increase and strengthen the dominant position of the merged undertaking," the commissioned continued.