Competition commission accused of cement bias
Otavi Cement Group has accused the Namibia Competition Commission (NaCC) of sidelining local companies when it approved a merger between Schwenk Namibia and German-registered RWCo GmbH & Co KG.
The NaCC last week approved the merger, marking the exit of founding shareholders in Ohororongo Cement, Schwenk Zement.
The merger will see Schwenk Zement’s 69.83% shareholding in Schwenk Namibia acquired by RWCo GmbH. The rest of the shareholding in is held by the Industrial Development Corporation (14.27%), the Development Bank of Namibia (11.73%) and the Development Bank of South Africa (4.17%).
In its opposition to the acquisition, Otavi Cement voiced concern that the majority shareholding was now being transferred from one German-registered entity to another.
The company further lamented that the merger did not address Namibia’s skewed economic conditions, something the NaCC ought to tackle.
“Namibia comes from a history of being disadvantaged and despite the country having vast wealth, many Namibians own little to nothing and do not participate in the economy,” Otavi Cement said.
“The crafters of this legislation [the Competition Act] understood this, hence the purpose of the Act speaks to this,” Otavi Cement added.
No efforts made
Otavi Cement also voiced concern about the NaCC’s ‘inability’ to ensure that Namibians would be able to participate in the transaction.
“No efforts were made by the commission to ensure that the proposed merger was inclusive of Namibians. Otavi Cement Group was not consulted prior to the merger being approved and is ready and able to acquire the shareholding in question and has achieved the financial ability,” it said.
“Not only us. We believe that there may be many Namibian individuals and companies who should be given the opportunity if they have the ability.”
Otavi Cement added that it holds an exclusive prospecting licence (EPL) in the same area Ohorongo Cement operates in, giving it access to a cement ore body on Farm Sagberg in the Otjozondjupa Region.
The aggrieved company further argued that no conference to challenge the proposed merger took place.
“No convention of the conference was made specifying the time and place, including the stipulated matters to be considered. This is odd as when there was an attempted acquisition in 2020 of the same, the competition commission held a conference,” it said.
Otavi Cement said while it raised its intent to acquire shareholding in Schwenk Namibia, it was not given an opportunity to submit a bid.
“The commission knew about the intention and the interest of Otavi Cement Group in acquiring 100% shares in Schwenk Namibia,” the company said, adding that the NaCC made no attempts to contact it regarding this interest.
The NaCC last week approved the merger, marking the exit of founding shareholders in Ohororongo Cement, Schwenk Zement.
The merger will see Schwenk Zement’s 69.83% shareholding in Schwenk Namibia acquired by RWCo GmbH. The rest of the shareholding in is held by the Industrial Development Corporation (14.27%), the Development Bank of Namibia (11.73%) and the Development Bank of South Africa (4.17%).
In its opposition to the acquisition, Otavi Cement voiced concern that the majority shareholding was now being transferred from one German-registered entity to another.
The company further lamented that the merger did not address Namibia’s skewed economic conditions, something the NaCC ought to tackle.
“Namibia comes from a history of being disadvantaged and despite the country having vast wealth, many Namibians own little to nothing and do not participate in the economy,” Otavi Cement said.
“The crafters of this legislation [the Competition Act] understood this, hence the purpose of the Act speaks to this,” Otavi Cement added.
No efforts made
Otavi Cement also voiced concern about the NaCC’s ‘inability’ to ensure that Namibians would be able to participate in the transaction.
“No efforts were made by the commission to ensure that the proposed merger was inclusive of Namibians. Otavi Cement Group was not consulted prior to the merger being approved and is ready and able to acquire the shareholding in question and has achieved the financial ability,” it said.
“Not only us. We believe that there may be many Namibian individuals and companies who should be given the opportunity if they have the ability.”
Otavi Cement added that it holds an exclusive prospecting licence (EPL) in the same area Ohorongo Cement operates in, giving it access to a cement ore body on Farm Sagberg in the Otjozondjupa Region.
The aggrieved company further argued that no conference to challenge the proposed merger took place.
“No convention of the conference was made specifying the time and place, including the stipulated matters to be considered. This is odd as when there was an attempted acquisition in 2020 of the same, the competition commission held a conference,” it said.
Otavi Cement said while it raised its intent to acquire shareholding in Schwenk Namibia, it was not given an opportunity to submit a bid.
“The commission knew about the intention and the interest of Otavi Cement Group in acquiring 100% shares in Schwenk Namibia,” the company said, adding that the NaCC made no attempts to contact it regarding this interest.
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