The Competition Regulatory Authority (ARC) has ruled in favor of the full acquisition of Cimentos de Moçambique by China's Huaxin Cement Co, through its wholly owned subsidiary, Huaxin (Hong Kong) International Holdings.

In a statement, ARC said it did not oppose the operation to merge all the shares held by InterCement Trading Inversiones in Natal Portland Cement Company (NPC, owner of Cimentos de Moçambique) with Huaxin, and said it was a planned transaction.

"Pursuant to Article 3(1) of the Competition Law, the Proposed Transaction constitutes a concentration of companies through which Huaxin Hong Kong will acquire exclusive control over Cimentos de Moçambique," explains the ARC statement.

It should be remembered that in July this year the ARC received a merger notification from these companies under the Competition Act.

"The transaction constitutes a concentration operation, under the terms of article 23 of the Competition Law and is of the Horizontal type, subject to prior notification to the Competition Regulatory Authority, under the terms of article 24(1) of the aforementioned Law, in conjunction with article 11(1)(c) of the Competition Law Regulation, approved by Decree no. 97/2014, of December 31, revised by Decree no. 101/2021, of December 31," it reads.

NPC holds stakes in South African and Mozambican companies, namely InterCement South Africa Proprietary Limited, NPC InterCement (RF) Proprietary Limited (in South Africa) and Cimentos de Moçambique S.A. (in Mozambique).