[miningmx.com] – SOUTH Africa’s Competition Tribunal approved the R2.15bn takeover of Optimum Coal Mine by Tegeta Exploration and Resources provided the deal did not involve retrenchment of some 3,000 employees.
“Through this transaction we have prevented the loss of more than 3,000 jobs, by heading off an almost certain liquidation,” said Nazeem Howa, CEO of Oakbay Investments.
The Competition Commission said the proposed transaction was “… unlikely to substantially prevent or lessen competition in the thermal coal market”.
It added that the merging parties were “small players in the market” and face competition from larger rivals such as Anglo American, Exxaro Coal and South 32. “Thus
there are credible alternative suppliers of thermal coal,” it said.
Tegeta is a black-owned operator owned by Mabengela Investments and Oakbay Investments, the holding company for the Gupta family’s businesses. Once the transaction is completed Tegeta will supply a maximum of 5% of Eskom’s total coal supply.
