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Competition authorities approve Kgalagadi Manganese takeover

16th January 2017

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

     

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JOHANNESBURG (miningweekly.com) – The Competition Tribunal has approved the merger between Kgalagadi Alloys and Kalagadi Manganese without conditions.

Kgalagadi Alloys will acquire Northern Cape-based Kalagadi Manganese.

Kgalagadi Alloys is a shelf company which has no operations or business activities. Kalagadi Manganese owns new-order mining rights covering an area of 6 300 ha and spanning three farms in the Kalahari basin.

The three farms are believed to hold some 960-million tonnes of manganese ore, with exploration programmes having identified 102-million tonnes of mineral resources.

Before the merger, Kgalagadi Manganese was 50% held by steel manufacturer ArcelorMittal, 40% by Kalahari Resources and 10% by the Industrial Development Corporation.

The Competition Commission noted that the proposed transaction was unlikely to substantially prevent or lessen competition in any market or result in job losses.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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