Whale Rock-Schwenk merger approved

Mines minister Modestus Amutse has overturned a Namibia Competition Commission (NaCC) decision blocking Whale Rock Cement's acquisition of Schwenk Namibia, the majority shareholder in Ohorongo Cement.

Whale Rock, the controlling entity of Cheetah Cement, first filed notice of the deal with the NaCC on 17 February 2025, seeking to acquire the entire issued share capital of Schwenk Namibia from Schwenk Zement International GmbH & Co. KG. Schwenk Namibia holds a 69.83% stake in Ohorongo Cement, with the remaining shares held by the Industrial Corporation of South Africa, the Development Bank of Namibia and the Development Bank of Southern Africa. If completed, the deal would give Whale Rock full control of cement production in Namibia, uniting the country's only two producers under one owner.

Ohorongo Cement was established by the Schwenk Group in 2007 and began production near Otavi in December 2010. Beyond cement manufacturing, the company has invested in alternative energy through its subsidiary Energy for Future, which converts bush biomass cleared from farmland into energy for the plant, supporting bush encroachment control efforts.

Whale Rock opened its own factory near Otjiwarongo in April 2018 and has previously pointed to that investment as a sign of confidence in Namibia's regulatory environment.

The NaCC blocked the merger in July 2025, warning it would collapse the domestic cement duopoly into a monopoly. Whale Rock later said it was considering shutting Cheetah Cement down altogether, citing sustained losses and threatening 87 job cuts.

Using his review powers under section 49(3) and (4)(a)(i) of the Competition Act, Amutse has now approved the merger with conditions attached. These require that the deal result in no job losses, that the Cheetah Cement plant remain operational, and that local ownership in the combined entity rise to at least 40%. The NaCC will continue monitoring the merged entity for signs of market dominance.

A government notice inviting public submissions on the review was published on 27 February 2026. Amutse said no representations were received.