The Eswatini Competition Commission (ESCC) has conditionally approved West International New Building Materials' (WINBM) acquisition of 100 per cent of AfriSam Eswatini.
Singapore-based WINBM participates in the Eswatini cement market through imports from Mozambique's Dugongo Cimentos, while AfriSam Eswatini operates a cement blending facility at Matsapha and sources bulk cement and other inputs from South Africa.
The ESCC found that AfriSam Eswatini and Dugongo are the country's two leading suppliers of blended cement and that their combination would create a dominant market participant and significantly increase market concentration.
The commission raised concerns that the merged entity could have greater ability to increase prices, reduce output or lower service quality. It nevertheless approved the transaction subject to safeguards intended to protect competition in the domestic cement market.
