Namibian commission blocks mega merger

The Namibian Competition Commission has blocked the $87m sale of Ohorongo Cement to a Chinese company. The commission expressed concern that, if approved, it could lead to less competition in the industry and enable possible collusion and price fixing which would impact on consumers. The arrangement would have seen Chinese incorporated West China Cement Limited buying 100% of Schwenk Namibia Pty Ltd's shares. The Namibian reports that the company owns 69.8% of Ohorongo, the country’s biggest cement plant owner. Other shareholders include Industrial Development Corporation of SA (14%), the Development Bank of Namibia (11%) and the Development Bank of Southern Africa (4%). The competition watchdog said after careful consideration it found that the proposed transaction would substantially prevent or lessen competition in the cement industry. It added that if the merger had been approved, it would have made it extremely difficult for any Namibian-owned company to enter the sector.

Full report in The Namibian