Markets

Namibia competition watchdog blocks West China Cement's Schwenk deal

The Namibian Competition Commission has blocked the sale of Schwenk Namibia's stake in Ohorongo Cement to West China Cement over fears the deal could lead to anti-competitive behaviour in the local market, the regulator said Wednesday.

JOHANNESBURG, Aug 5 (Reuters) - The Namibian Competition Commission has blocked the sale of Schwenk Namibia's stake in Ohorongo Cement to West China Cement 2233.HK over fears the deal could lead to anti-competitive behaviour in the local market, the regulator said Wednesday.

West China Cement Limited already owns a majority stake in another cement maker in Namibia, Whale Rock Cement, which trades as Cheetah Cement.

Schwenk Namibia owns a 69.8% stake in Ohorongo Cement, the southern African country's biggest cement maker.

In the ruling, the competition watchdog said if the 1.5 billion Namibian dollars ($870 million) deal was allowed to proceed it would stifle competition and lead to possible collusion and price-fixing.

"The Namibian Competition Commission (has) made a decision to prohibit the acquisition of Schwenk Namibia (Pty) Ltd by West China Limited due to the fact that it would result in coordination between Ohorongo Cement (Pty) Ltd and Whale Rock Cement," the regulator said in its statement.

($1 = 17.2430 Namibian dollars)

(Reporting by Nyasha Nyaungwa. Editing by Jane Merriman)

((mfuneko.toyana@thomsonreuters.com; +27117753153; Reuters Messaging: mfuneko.toyana.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

World Markets

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More