The Namibian Competition Commission has started a public conference on the proposed acquisition of Schwenk Cement’s shareholding in Ohorongo Cement by Whale Rock Cement, the owner of Cheetah Cement. This transaction would consolidate Namibia’s only two cement manufacturers into a single integrated entity.
As clarified by Johannes Ashipala, director of mergers and acquisitions at the Commission, the initial Section 46 conferences are investigative by design. They serve as fact-finding exercises, critical engagements that precede the commission’s final determination.
The proposed transaction is classified as a horizontal merger, given that both entities operate in the manufacturing and distribution of cement. The commission’s preliminary concerns mirror those that led to the prohibition of the 2020 West China Cement and Ohorongo Cement merger – a structural shift from two players to one poses serious risks to market dynamics. This could result in:
• potential degradation in product quality
• a risk of increased or predatory pricing
• foreclosure of downstream suppliers and SMEs currently integrated into the Ohorongo supply chain.
These concerns are amplified by the possibility that the merged entity could raise barriers to entry through vertical integration and the consolidation of customer bases.
In the absence of a merger, one of the cement plants would likely shut down due to persistent overcapacity. Cement demand in Namibia sits at approximately 600,000tpa, against a combined capacity of 2.6 Mta. With limited export prospects, given regional bans (eg Botswana) and cost disadvantages (eg South Africa), the argument is that the market cannot sustain two players. CemNet reported on the initial Whale Rock Cement application to acquire Ohorongo Cement in March 2025.
