The South African Competition Commission has conditionally approved the proposed merger whereby miner Bright Minerals intends to acquire ferrochrome producer Mogale.
Mogale was previously owned by Nasdaq- and London-listed specialist alloy producer Afarak Group, which placed its South African subsidiaries in business rescue in May 2020.
Bright Minerals is primarily a producer of ferrochrome in China, which it supplies to stainless steel producers in that country.
In South Africa, Bright Minerals, through Cheetah Chrome, owns a chrome ore mine that has been on care and maintenance for many years.
The commission found that the proposed transaction was unlikely to substantially prevent or lessen competition in the market for the production of ferrochrome.
In relation to public interest, the commission evaluated concerns about retrenchments recently undertaken by Bright Minerals.
The merging parties agreed to a condition that it would establish a database with the contact details of the affected employees and, for a period of 24 months from the implementation date, would notify the affected employees of any positions arising, the requirements and the location of such positions.