Ester Mbathera
Whale Rock Cement, the controlling entity of Cheetah Cement, has filed a notice to acquire Schwenk Namibia, which holds a majority stake in Ohorongo Cement.
If approved, the transaction, filed with the Namibian Competition Commission (NCC) on 17 February, would give Whale Rock Cement complete control over cement production in Namibia.
The deal involves Whale Rock Cement acquiring the entire issued share capital of Schwenk Namibia from SCHWENK Zement International GmbH & Co. KG.
Schwenk Namibia currently holds a 69.83% stake in Ohorongo Cement, with the remaining shares held by Industrial Corporation South Africa (14.27%), Development Bank of Namibia (11.73%), and Development Bank of Southern Africa (4.17%).
Ohorongo Cement, established in 2007 by the Schwenk Group, began production in December 2010.
The company not only manufactures and supplies cement under the Ohorongo Cement brand but also focuses on procuring alternative energy sources.
Through its subsidiary, Energy for Future (Pty) Ltd, Ohorongo Cement reduces scrub encroachment on farms and converts the biomass into energy for its cement plant.
Last week, Whale Rock Cement said it has confidence in the country’s regulatory framework.
“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,” said the company.
Whale Rock opened its cement factory near Otjiwarongo in April 2018.
This is not the first attempt by an Asian company to acquire Ohorongo Cement.
In 2019, Singapore-listed International Cement Group Limited announced a N$1.5 billion acquisition of Ohorongo Cement, but the deal did not materialise.
Similarly, in 2020, a proposed merger between Schwenk Namibia and West China Cement was blocked due to concerns over collusion between the only two cement producers.
At the time, the two producers were Ohorongo Cement and Cheetah Cement.
In 2024, a merger between Schwenk and RWCo GmbH was approved with conditions to promote local ownership in Ohorongo Cement, but the parties abandoned the transaction, citing overly onerous requirements.
It is not the first time that an Asian company attempted to acquire Ohorongo Cement.
The NCC has called for public input on the proposed acquisition to ensure fair competition.
Stakeholders with concerns about the transaction can submit feedback via the NCC website.
“Provide a brief description of your concern, and include any relevant details or documentation. Your submission will be reviewed confidentially, and we’ll follow up if further information is needed,” the NCC stated.
