The South African Competition Commission has recommended the proposed acquisition of the troubled Optimum Coal Mine (OCM) by Tegata Exploration and Resources be approved with conditions.
OCM is controlled by Optimum Coal Holdings (OCH), which is partly owned by Swiss commodities giant Glencore but has been in business rescue in August after it failed to renegotiated a coal supply agreement with state utility, Eskom.
“The Competition Commission’s recommendation that this deal is approved is good for all of Optimum’s employees,” said Nazeem Howa, CEO of Oakbay Investments, which owns Tegata. “As the commissions recommendation states, the transaction will not substantially prevent or lessen competition in the thermal coal market.”
Towa also echoed previous commitments to the mines employees, saying that “through this acquisition we have prevented a liquidation what would have seen 3000 people lose their jobs.”
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/mining/12022016/optimum-coal-purchase-approved-2016-228/