A High Court case has been filed by iTe Products, a Gauteng-based company, against Minister Modestus Amutse, over his approval of a merger between Whale Rock Cement and Schwenk Namibia, the majority owner of Ohorongo Cement. The merger was approved on 1 October. iTe Products argues that Amutse made a mistake in allowing the merger, citing that he did so under the false premise that no objections had been received.
iTe Products, a major customer of Ohorongo cement, opposes the merger, claiming it would create a monopoly and risk employment. The company's director, Peter Funke, says in an affidavit that the merger would have detrimental effects on the market. The Namibian Competition Commission (NaCC) previously blocked the merger in 2025 for similar reasons. The NaCC stated that the proposed merger would result in a monopoly, with no concrete benefits to outweigh the negative effects.
Whale Rock Cement, which owns the brand Cheetah Cement, appealed against the NaCC's decision, arguing that the merger would not create a dominant position in the market and would not negatively impact employment. Amutse announced on 27 February that he would consider the appeal, inviting interested parties to make submissions within 30 days. He ultimately overturned the NaCC's decision on 11 June, attaching conditions to the merger to protect workers.
The conditions set by Amutse included no job losses and the Cheetah Cement plant not being destroyed. However, iTe Products, along with its partner company Pharoah Cement and the Construction Industries Federation of Namibia, is now suing Amutse, alleging that they did submit an objection to the merger, contrary to his claims. The plaintiffs argue that Amutse's decision was made on an incomplete record.
Documents filed at the High Court include a receipt showing that the ministry received the objections on 25 March. iTe Products claims that Amutse's failure to consider their submissions meant that his decision was not based on the true facts and complete record. The company is seeking to have Amutse's decision set aside and the merger prohibited.
The case will be heard in the High Court, with iTe Products and its co-plaintiffs seeking to have the merger overturned. Amutse has not responded to requests for comment on the matter. The outcome of the case will have significant implications for the Namibian cement industry and the proposed merger between Whale Rock Cement and Schwenk Namibia.
The merger, if allowed, would combine Namibia's two cement companies, potentially creating a monopoly. The plaintiffs argue that this would have severe consequences for the market and employment. The court's decision will determine the fate of the proposed merger and the future of the Namibian cement industry.
Key points
- iTe Products is suing Minister Modestus Amutse over his approval of a merger between Whale Rock Cement and Schwenk Namibia.
- The Namibian Competition Commission previously blocked the merger due to concerns over monopoly and employment.
- The High Court case will determine the fate of the proposed merger and its potential impact on the Namibian cement industry.
