Whale Rock Cement unveils plans to acquire Schwenk Namibia

Whale Rock Cement has set its sights on acquiring Schwenk Namibia, a move that would secure control over the majority stake in Ohorongo Cement if the Namibian Competition Commission gives approval to the deal. The acquisition would mean that Whale Rock Cement, the parent company of Cheetah Cement, would have complete dominance over the cement production industry in Namibia.

The proposal to acquire Schwenk Namibia by Whale Rock Cement involved the transfer of Schwenk Namibia’s entire issued share capital from SCHWENK Zement International GmbH & Co. KG. Schwenk Namibia currently possesses a 69.83% interest 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, founded in 2007 by the Schwenk Group, started its operations in December 2010. Apart from producing and distributing cement under the Ohorongo Cement brand, the company concentrates on obtaining alternative energy sources for sustainability. Energy for Future (Pty) Ltd, a subsidiary of Ohorongo Cement, plays a vital role in minimizing scrub encroachment on farmlands and transforming biomass into energy to power the cement plant.

Whale Rock Cement expressed confidence in the nation’s regulatory environment recently, highlighting the decision to establish its plant in Namibia as a testament to this belief. The company exemplified its conviction in the country and its regulatory system, asserting that Namibia leads many African nations in providing an investment-friendly atmosphere. Whale Rock Cement inaugurated its cement factory close to Otjiwarongo in April 2018.

The move by Whale Rock Cement to buy Schwenk Namibia has similarities to earlier acquisition efforts by other entities. In 2019, International Cement Group Limited, a Singapore-listed company, proposed a N$1.5 billion deal to take over Ohorongo Cement, though this proposition did not come to fruition. Additionally, in 2020, a merger involving Schwenk Namibia and West China Cement hit a roadblock due to concerns about potential collusion between the only two cement producers in the country then, Ohorongo Cement and Cheetah Cement.

In 2024, a deal featuring a merger between Schwenk and RWCo GmbH received approval under specific conditions to foster local ownership in Ohorongo Cement. Nevertheless, the involved parties withdrew from the transaction, citing burdensome requisites.

To ensure fair competition, the Namibian Competition Commission has called for public opinions on the intended acquisition. Interested stakeholders are encouraged to submit their insights through the NCC website. The commission has assured confidentiality and promised prompt follow-up if any additional details are required from the participants.