Cement company fined N$5 million for unapproved merger

The Namibian Competition Commission (NaCC) has fined a cement company after it executed a merger without the commissioner’s prior approval.

In a statement released yesterday, after investigations, the commission found that acquisition of Chinese-owned Hong Xiang Holdings shares by Zhongke from Qingmei, will create a monopoly in the Namibian cement market.

“The transaction failed to meet the notification requirements set forth in section 44, which is designed to prevent potential anti-competitive effects,” said NaCC spokesperson Dina //Gowases.

According to //Gowases, the merger would significantly impact competition in the cement sector, which is crucial for the construction industry and national economy.

The settlement agreement mandates that the parties pay a fine of N$5 million and implement a compliance programme on competition law in Namibia.

“Effective competition encourages productivity and innovation, which benefits consumers and promotes economic growth,” said //Gowases.

“Our role is to prevent market structures that could lead to anti-competitive behaviour.”