Whale Rock Cement Pursues Acquisition of Schwenk Namibia to Control Ohorongo Cement
Whale Rock Cement seeks to acquire Schwenk Namibia to gain control over Ohorongo Cement, currently majority-owned by Schwenk. This acquisition, intended for regulatory approval, signals confidence in Namibia’s investment environment, amid past attempts by other companies to obtain similar stakes. The NCC is soliciting public feedback on this proposed transaction to ensure fair competition.
Whale Rock Cement, which controls Cheetah Cement, has filed a notice to acquire Schwenk Namibia, the majority stakeholder in Ohorongo Cement. This transaction, submitted to the Namibian Competition Commission (NCC) on February 17, aims to provide Whale Rock Cement with full control over cement production in Namibia.
The acquisition involves Whale Rock Cement purchasing the total issued share capital of Schwenk Namibia from SCHWENK Zement International GmbH & Co. KG. Presently, Schwenk Namibia 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 was established in 2007 and commenced production in December 2010.
Ohorongo Cement not only produces and supplies cement under its brand but is also committed to alternative energy initiatives. Through its subsidiary, Energy for Future (Pty) Ltd, the company addresses environmental concerns by converting plant biomass into energy for its operations. Whale Rock Cement has expressed strong confidence in Namibia’s regulatory environment, 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.”
Historically, there have been other attempts by Asian firms to acquire Ohorongo Cement. In 2019, International Cement Group Limited proposed a N$1.5 billion acquisition, which failed to materialize. A merger between Schwenk Namibia and West China Cement was blocked in 2020 due to potential collusion concerns. Furthermore, a 2024 merger between Schwenk and RWCo GmbH was approved but was abandoned over stringent conditions.
The NCC has invited public input regarding this proposed acquisition as part of its commitment to ensuring fair competition. Stakeholders with concerns are encouraged to submit their feedback through the NCC website, providing a brief description of their concerns and any relevant documentation for confidential review.
Whale Rock Cement’s intended acquisition of Schwenk Namibia holds significant implications for the cement industry in Namibia, potentially consolidating cement production under one entity. This transaction emphasizes the company’s confidence in Namibia’s investment environment. However, historical attempts for similar acquisitions by Asian firms remind us of the challenges faced in the cement sector, prompting the NCC to seek public input to maintain competitive fairness in the industry.
Original Source: www.observer24.com.na
