The Namibian Competition Commission (NACC) has fined three Chinese companies and a local company, Whale Rock Cement, N$5 million for implementing a merger between the entities without the permission of the Commission.

The NACC says Fan Qingmei, Wang Zhongke, Hong Xiang Holdings, and Whale Rock Cement entered into a settlement agreement following the Commission's investigation, which found that the parties have contravened Chapter 4 of the Competition Act for implementing a merger without the approval of the Commission. 

The Commission's investigation found that the parties contravened Sections 44, 51, and 53 of the Competition Act, and the investigation's findings indicated that the acquisition would have resulted in an effective monopoly in the production and supply of cement in Namibia that would likely have resulted in anti-competitive effects.

Hong Xiang Holdings is the majority shareholder with a 70% shareholding in Whale Rock Cement and accordingly controls Whale Rock Cement. 

As a result, the parties agreed to settle this matter and entered into a settlement agreement with the Commission, wherein they would pay a penalty of N$5 million and implement a compliance programme on competition law in Namibia. 

The settlement agreement entered between the parties and the Commission was made an order of court in the High Court on Monday.

The Commission has encouraged concerned stakeholders to ensure that they remain in compliance with the Competition Act, specifically Chapter 4, saying if stakeholders are not sure whether the transactions they wish to pursue are notifiable or not, the Commission encourages such stakeholders to approach the Commission and seek an advisory opinion before proceeding.