The regulator considered that the deal would not have a negative impact on competition.
The South African Competition Commission has recommended that the Competition Tribunal approve the transaction between Glencore Operations South Africa (GOSA), representing the PSV consortium, and Sibanye for the acquisition of chrome processing facilities, without any conditions.
Glencore is a diversified company engaged in the mining, processing, and trading of raw materials. In South Africa, Glencore is involved, among other things, in coal mining and trading, as well as—relevant to this transaction—in the mining of chrome ore and the production of chrome concentrate at chrome recovery plants (CRPs). GOSA represents the interests of the unincorporated PSV consortium, which was established in partnership with Merafe Ferrochrome and is controlled by Glencore.
Sibanye is an international mining company listed on the Johannesburg and New York stock exchanges.
Both companies plan to acquire the chrome recovery plants (CRPs), which were previously under their ownership, in order to join forces in the mining and processing of chrome.
The Commission concluded that the transaction would not result in a substantial lessening of competition and does not raise any significant public interest concerns.
Source: CompCom.co.za
