Germany’s Schwenk cancels Ohorongo transaction
Watchdog criticised
Schwenk Zement International said it did not want to accept any delays caused by the ongoing review proceeding.
The purchase agreement between Schwenk Zement International GmbH and RWCo GmbH regarding shares in Schwenk Namibia has been cancelled.
The agreement, which was signed on 6 April 2023, was for 100% of the shares in Schwenk Namibia, which holds, inter alia, 69.83% of Ohorongo Cement and 100% of Energy For Future.
The agreement was waiting on the approval of the Namibian Competition Commission (NaCC).
NaCC
According to RWCo, rather than approving the agreement, the NaCC imposed a condition for which there is no legal basis under Namibian competition law.
RWCo filed a review against the decision with the minister of trade and industry, which was still pending.
However, on 7 February this year, Schwenk Zement International decided to terminate the purchase agreement, saying it did not want to accept any delays caused by the ongoing review proceeding.
According to RWCo, during the course of the acquisition process, which lasted around two years, “incomprehensible developments and inconsistencies in the relevant state institutions in Namibia came to light” that would not only impact potential investors, but also negatively impact the Namibian people.
The agreement, which was signed on 6 April 2023, was for 100% of the shares in Schwenk Namibia, which holds, inter alia, 69.83% of Ohorongo Cement and 100% of Energy For Future.
The agreement was waiting on the approval of the Namibian Competition Commission (NaCC).
NaCC
According to RWCo, rather than approving the agreement, the NaCC imposed a condition for which there is no legal basis under Namibian competition law.
RWCo filed a review against the decision with the minister of trade and industry, which was still pending.
However, on 7 February this year, Schwenk Zement International decided to terminate the purchase agreement, saying it did not want to accept any delays caused by the ongoing review proceeding.
According to RWCo, during the course of the acquisition process, which lasted around two years, “incomprehensible developments and inconsistencies in the relevant state institutions in Namibia came to light” that would not only impact potential investors, but also negatively impact the Namibian people.
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