International Cement set to acquire Schwenk Namibia

Singapore’s International Cement Group has entered into a conditional agreement to acquire a 100 per cent stake in Schwenk Namibia Pty Ltd for SGD141.89m (US$104.4m). This amount comprises of US$19.3m for its shares and another US$85.1m for the purchase of its loans, according to the Straits Times.

Amongst its assets Schwenk Namibia owns a 69.8 per cent stake in Ohorongo Cement, which operates a 1Mta facility in north Otavi.

International Cement noted that instead of building a new plant in Namibia, having a commercially operational works will eliminate project risk during construction. The company had previously expanded into central Asia in 2017.

The acquisition is expected to take advantage of the opportunities available in the country due to infrastructure construction. However, the deal is subject to the relevant approvals by shareholders and government authorities.