The government has opted to regulate rather than block Namibia’s biggest cement merger, approving the combination of Whale Rock Cement (Pty) Ltd and Schwenk Namibia (Pty) Ltd despite warnings from the Namibia Competition Commission (NaCC) that the deal could harm competition.
Minister of Industries, Mines and Energy Modestus Amutse overturned the Commission’s decision to prohibit the merger, arguing that competition concerns could be addressed through strict conditions and ongoing regulatory oversight.
The decision, published in Government Gazette Notice No. 229 of 2026, clears the way for the merger while placing the burden on the Competition Commission to ensure the combined company does not abuse its market position.
Under the approval, no jobs may be lost because of the transaction, the Cheetah Cement plant must remain operational and not be demolished, and the merged company must increase local ownership to at least 40%.
The Minister also directed the Competition Commission to actively monitor the business after the merger to prevent monopolistic behaviour and any abuse of market dominance.
“While appreciating that the Commission acted within the confines of its enabling piece of legislation, I am of the considered opinion that the concerns raised by the Commission can be remedied by attaching appropriate conditions to the proposed merger as well as where necessary, the Commission to initiate investigations post the merger,” Amutse said.
The Competition Commission had previously prohibited the merger after concluding that combining the country’s two largest cement producers posed a risk to competition.
NaCC Corporate Communications Practitioner Dina //Gowases confirmed that the Minister had exercised his powers under the Competition Act to overturn the regulator’s decision following an appeal by the merging parties.
She said the Commission is now responsible for ensuring the merged entity complies with the Minister’s conditions.
“We are required to monitor that the merger does not translate into a monopoly,” //Gowases said.
She added that the Commission will implement a structured compliance programme to monitor pricing behaviour, market concentration and employment outcomes after the merger takes effect.
The decision shifts the focus from whether the merger should proceed to whether regulatory oversight will be sufficient to prevent higher prices and reduced competition in Namibia’s cement industry.
