The Competition Commission has recommended that the Competition Tribunal approve the proposed acquisition of platinum group metals (PGMs) miner Bokoni Platinum by special purpose vehicle African Rainbow Minerals (ARM) Bokoni, subject to public interest conditions.
The commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets.
However, the commission requests that the merger be approved subject to certain public interest conditions, including commitments to support a greater spread of ownership by historically disadvantaged persons, as well as conditions related to employment.
ARM Bokoni was established by diversified miner ARM for the proposed transaction and does not have any business activities.
The acquiring firm – ARM Bokoni – is controlled by ARM Platinum, which is in turn controlled by ARM.
The ARM Group has operations in South Africa and a manganese alloy production plant in Malaysia. The ARM Group mines and beneficiates iron-ore, manganese ore, chrome ore, PGMs, nickel, ferromanganese and coal and also has a strategic investment in gold.
Bokoni Platinum is wholly-owned by Bokoni Platinum Holdings, which does not directly or indirectly control any firm.
Bokoni Platinum holds the mining rights to and operates Bokoni Mining – an underground PGMs mining operation located in Limpopo which forms part of the north-eastern limb of the Bushveld Complex.