Cheetah Cement, a Namibia-based producer owned by Whale Rock Cement, has stopped plans to retrench workers after the government reversed an earlier decision blocking its proposed takeover of Ohorongo Cement, easing pressure on the struggling producer.

The company had begun consultations in March on the possible retrenchment of 87 employees, following a period of financial strain linked to export restrictions and uncertainty over the merger approval process.

That process shifted this week when Industries, Mines and Energy Minister Modestus Amutse announced in the Government Gazette that he had set aside the Namibian Competition Commission’s decision to block the transaction. The appeal was brought by Whale Rock Cement, the Chinese-owned company behind the Cheetah Cement brand.

Reversal halts retrenchment plans

Cheetah Cement spokesperson Tabby Moyo said the reversal immediately changed the company’s plans.

“We are excited about the decision. We had begun negotiations about retrenchments, but all that has now been ceased,” Moyo said.

He added that the local cement market remains limited, with both Cheetah Cement and Ohorongo originally built on expectations of strong regional exports. Those expectations have weakened as neighbouring countries, including Botswana and Zimbabwe, introduced measures to protect domestic cement production.

“As a result, these companies are operating at about 50% capacity,” Moyo said. “By merging and running one plant at full capacity, economies of scale make the operation more viable.”

Whale Rock Cement bid for Schwenk Namibia

Whale Rock Cement submitted its bid for all shares in Schwenk Namibia, which owns Ohorongo Cement, in February last year. The Competition Commission rejected the application on July 4, 2025, citing concerns that the deal would reduce competition in a market with only two major producers.

The commission also warned that the merger could lead to job losses, a concern that was central to its initial decision.

However, Minister Amutse said those concerns could be addressed through strict conditions attached to the approval.

“While appreciating that the commission acted within the confines of the law, I am of the considered opinion that the concerns raised can be remedied by attaching appropriate conditions,” he said in the Government Gazette.

Among the conditions set by the ministry are a prohibition on job losses linked to the merger, continued regulatory monitoring to prevent the creation of a monopoly, and safeguards to ensure the Cheetah Cement plant is not shut down or dismantled.

“Options should be explored to ensure its continued existence and transformation into a productive facility with the capacity to employ Namibians,” Amutse said.

The ministry also directed both Whale Rock Cement and Schwenk Namibia to raise local ownership to at least 40%.

Competition Commission spokesperson Dina Gowases said the regulator would comply with the minister’s decision and continue to monitor the transaction to ensure the conditions are met.

Cheetah Cement faces operating pressures

Labour groups also reacted to the development. The Mineworkers Union of Namibia said it welcomed the suspension of retrenchment plans but would continue to watch the process closely.

“MUN makes its position unequivocally clear: the union will not tolerate any attempt to use this transaction to increase corporate profits at the expense of workers,” said general secretary George Ampweya.

Ohorongo Cement declined to comment, noting that the ministerial decision relates primarily to ownership changes at the holding company level.

Cheetah Cement, operated by Whale Rock Cement, is one of Namibia’s two major cement producers, running a large integrated plant near Otjiwarongo. The company has faced a difficult operating environment in recent years, shaped by weak regional demand, shifting trade policies, and previous regulatory setbacks, including temporary shutdowns in 2022 and penalties linked to market conduct in 2024.