Namibia competition watchdog blocks West China Cement's Schwenk deal

West China Cement

05/08/2020 11:59

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
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