Tongaat's starch sale receives competition approval, but MAC dispute still unresolved
The Competition Tribunal has approved, without conditions, the disposal of JSE-listed Tongaat Hulett’s starch business to fellow-listed Barloworld.
However, the transaction still awaits approval from the competition authorities in Indonesia, while a third-party investigation into a material adverse change (MAC) in the sale and purchase agreement between Tongaat and Barloworld is yet to be resolved.
Barloworld in May raised concern about Tongaat’s starch business, which it intended to acquire, believing that Covid-19-related impacts on the earnings of the business had resulted in an MAC to the terms of the agreement.
The companies then decided to refer the matter to an independent accountant who would determine if such a change had taken place.
The acquisition cannot proceed if the MAC determination has not been finalised. If the determination has not been made by the longstop date for the acquisition, which is October 31, then the deal will be terminated.
Tongaat maintains that a MAC has not occurred and remains commited to the implementation of the disposal.
Comments
The
functionality
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation