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.”
Stay informed with The Namibian – your source for credible journalism. Get in-depth reporting and opinions for
only N$85 a month. Invest in journalism, invest in democracy –
Subscribe Now!