The High Court has overturned the industries minister’s decision to allow a merger between Namibia’s two cement companies after the minister admitted to an administrative blunder that meant objections to the merger never reached him.

Industries, mines and energy minister Modestus Amutse gave permission in June for Whale Rock Cement, the owner of the Cheetah Cement brand, to buy shares in Ohorongo Cement.

Last year, the Namibian Competition Commission prohibited the merger due to concerns that it would lead to job losses and a monopoly in the cement market.

Whale Rock appealed the decision to then industries minister Natangwe Ithete, who did not respond.

Amutse took up the appeal this year and decided to approve the merger with new conditions.

At the time, the minister said he had received “no representations to date” objecting to the merger. This has turned out to be an administrative mistake by the ministry.

In the appeal process, interested parties have a right to submit their opinions to the minister.

iTE Products, a South African customer of Ohorongo, had submitted detailed objections to the ministry.

It brought a court case against Amutse in September for failing to consider those objections.

“The determination [to allow the merger] was expressly premised on the assertion that no representations had been received. That assertion was objectively wrong,” iTE director Peter Funke says in an affidavit filed at the High Court.

Source: https://www.namibian.com.na/high-court-blocks-whale-rock-ohorongo-cement-merge/