Competition Commission approves Wescoal’s MacPhail acquisition
JOHANNESBURG (miningweekly.com) – The Competition Commission has unconditionally approved the R79-million acquisition of MacPhail Distributors’ coal trading business by Wescoal subsidiary Chandler Coal, enabling the junior miner to expand its productive asset base.
MacPhail had extensive operations across South Africa, with seven depots across three provinces, which Wescoal expected would impact positively on its profit margins.
“This transaction will also afford Wescoal significant synergies, such as cost savings and increased visibility and presence in the marketplace,” Wescoal CEO Andre Boje said last month.
Chandler Coal had, along with Wescoal Mining, secured R100-million from business finance provider Reichmans to fund the working capital requirements of the acquisition.
The transaction now remained subject only to approval by Wescoal shareholders, who had until November 18 to accept or reject the deal.
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