Justicia Shipena
The Namibian Competition Commission (NaCC) has blocked the proposed merger between Whale Rock Cement, trading as Cheetah Cement, and Schwenk Namibia, the parent company of Ohorongo Cement.
The decision was announced on Friday, 4 July 2025, following an investigation into the acquisition filed on 17 February 2025.
Whale Rock Cement had applied to acquire the entire issued share capital in Schwenk Namibia from Schwenk Zement International GmbH & Co. KG.
Whale Rock Cement owns and operates a cement plant near Otjiwarongo and supplies the domestic market under the Cheetah Cement brand. Schwenk Namibia holds a controlling interest in Ohorongo Cement, one of the country’s largest cement producers.
It also owns Energy for Future, a company that produces energy for Ohorongo using biomass sourced from clearing farm scrub.
The Commission defined the relevant market as the production and supply of cement in Namibia.
It found that the merger would turn the current duopoly into a monopoly, eliminating one of the country’s only two major competitors.
NaCC warned that the deal would give the merged company excessive market power, enabling it to act without regard to normal market pressures. The potential consequences, according to the commission include higher cement prices, lower output, declining quality, and fewer choices for consumers.
The effects, the Commission noted, would ripple through the construction sector and the broader economy.
NaCC also raised concerns about employment. It said that overlaps between the two companies could result in job losses.
It further warned that post-merger strategies might reduce tax contributions, which could negatively affect government revenue.
“The transaction was found to be likely to substantially lessen or prevent competition in the relevant market,” the Commission stated.
During a stakeholders’ meeting hosted by the NaCC in Windhoek, Otavi Constituency Councillor George Garab had objected to the merger, citing concerns over the potential sale of Ohorongo Cement to foreign investors. Garab, representing the Otavi Cement Group, expressed worry about the long-term impact of such a move on local interests.
Nick Korb, speaking on behalf of a business consortium that includes also opposed the merger. He warned that it would collapse the current duopoly and create a monopoly. Ohorongo Cement is majority-owned by Schwenk Zement International GmbH & Co., which holds a 69.83% stake through Schwenk Namibia. The Industrial Corporation of South Africa owns 14.27%, the Development Bank of Namibia holds 11.73%, and the Development Bank of Southern Africa owns 4.17%. Transparency concerns also emerged during the meeting.
It was revealed that Cheetah Cement had not informed its employees about the proposed merger.
Company spokesperson Tabby Moyo confirmed the omission, saying it was done deliberately to avoid speculation and confusion among workers.
