Amutse defends cement merger in face of lawsuit

Industries minister Modestus Amutse has defended his decision to allow Cheetah Cement to buy Ohorongo Cement as he faces a High Court case claiming he ignored objections to the merger. In June, Amutse allowed Chinese company Whale Rock Cement, which owns the brand Cheetah Cement, to buy all shares of Schwenk Namibia, which owns the majority of Ohorongo Cement. “I weighed the benefits [of the sale] in relation to the disadvantages of closing. We are talking about two companies that were closing, companies that had started the process of negotiating with workers to close. What is best for me is to protect the employment of the people,” the minister of industries, mines and energy told The Namibian on Monday. Whale Rock had tried to buy Ohorongo Cement in 2025 on the basis that the Namibian market is too small to support two cement factories. The Namibia Competition Commission (NaCC) blocked the sale in July 2025. Amutse overturned the NaCC decision in June 2026, saying he had received no additional submissions objecting to the merger. A South African customer of Ohorongo Cement, iTE Products, has now sued Amutse in the High Court because it says it has, in fact, submitted objections. “They [iTE] want to be heard. If they want to be heard, I come ready to hear them,” he told The Namibian. The government has not lodged an objection to the High Court case, which is due to be heard on 1 October. NEW COMPANY Amutse said the major issues identified by the competition watchdog included local ownership, potential price increases, and job losses. These will be addressed by new conditions, including 40% local ownership and protecting all jobs. “We must be honest with ourselves. Here, one [company] is opting out completely [and shutting down],” the minister said. It is better for both factories to remain open, even if it is under one owner, if all jobs are protected,” he said. “[Whale Rock has said it will] create work with a new product that is not cement,” he said. Cheetah Cement spokesperson Tabby Moyo yesterday said the company cannot comment on an ongoing court case. “On the types of products to be made by the merged company, there will be a need to carry out a market survey to establish the demand on whether to have both brands going or only have one,” he said. Moyo said the timeline for establishing greater local ownership would be determined by local entities with an interest in buying a stake coming forward.