Schwenk still keen to sell shares
NaCC rejected the proposed acquisition of Schwenk Namibia to West China Cement because the transaction was likely to prevent competition due to coordination.
PHILLEPUS UUSIKU
Despite the rejection by the Namibian Competition Commission (NaCC) of the proposed acquisition by West China Cement Ltd. (WCC), Schwenk Zement International GmbH & Co. KG Ulm, Germany has further interest to sell its Namibian subsidiary Schwenk Namibia (Pty) Ltd.
Schwenk Namibia (Pty) Ltd owns about 70% of the shares of Ohorongo Cement (Pty) Ltd, the first fully integrated cement producer in Namibia. Other shareholders are the Industrial Development Corporation (IDC), Development Bank of Namibia (DBN) and the Development Bank of Southern Africa (DBSA).
After the commissioning of the cement plant during December 2010, initiated by Schwenk in 2007, the business has successfully grown ever since. Schwenk has fulfilled and completed its development objectives by constructing a fully-fledged modern cement factory including the transfer of expertise to a workforce of Namibians.
Furthermore, this development included the promotion of SME suppliers and the establishment of an innovative industry for instance alternative energy, contributing to the national development goals "growth at home".
According to Schwenk's strategy to concentrate on the core business cement, concrete and aggregates in Europe, Schwenk has decided to maintain its decision to divest its Namibian assets and therefore to sell Schwenk Namibia (Pty) Ltd to interested parties under certain condition.
One of them being financial capabilities to make the acquisition and further develop the business, deep understanding and expertise in the cement business as well as a keen interest to further develop “growth at home”, the statement reads.
It is important to note that the search for a potential buyer included Namibian institutions, asset managers and other interested parties, however none could be identified that could fulfil the above three requirements.
Regardless of when a suitable buyer will be found and as in the past, it will remain the objective to continue to optimize the operations in Namibia in order to remain competitive and reliable in the Namibian market. [email protected]
Despite the rejection by the Namibian Competition Commission (NaCC) of the proposed acquisition by West China Cement Ltd. (WCC), Schwenk Zement International GmbH & Co. KG Ulm, Germany has further interest to sell its Namibian subsidiary Schwenk Namibia (Pty) Ltd.
Schwenk Namibia (Pty) Ltd owns about 70% of the shares of Ohorongo Cement (Pty) Ltd, the first fully integrated cement producer in Namibia. Other shareholders are the Industrial Development Corporation (IDC), Development Bank of Namibia (DBN) and the Development Bank of Southern Africa (DBSA).
After the commissioning of the cement plant during December 2010, initiated by Schwenk in 2007, the business has successfully grown ever since. Schwenk has fulfilled and completed its development objectives by constructing a fully-fledged modern cement factory including the transfer of expertise to a workforce of Namibians.
Furthermore, this development included the promotion of SME suppliers and the establishment of an innovative industry for instance alternative energy, contributing to the national development goals "growth at home".
According to Schwenk's strategy to concentrate on the core business cement, concrete and aggregates in Europe, Schwenk has decided to maintain its decision to divest its Namibian assets and therefore to sell Schwenk Namibia (Pty) Ltd to interested parties under certain condition.
One of them being financial capabilities to make the acquisition and further develop the business, deep understanding and expertise in the cement business as well as a keen interest to further develop “growth at home”, the statement reads.
It is important to note that the search for a potential buyer included Namibian institutions, asset managers and other interested parties, however none could be identified that could fulfil the above three requirements.
Regardless of when a suitable buyer will be found and as in the past, it will remain the objective to continue to optimize the operations in Namibia in order to remain competitive and reliable in the Namibian market. [email protected]
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