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Botswana Competition & Consumer Authority (CCA) has given green light to the take over of Khoemacau Copper Mining by Chinese global miner MMG Limited.
In a merger notice to the market this week the authority said after all the necessary assessments it is all systems go from their end.
The Competition Authority screens a proposed transaction and looks into the acquiring enterprise and the target company aswell as the relevant markets, competitive analysis and public interest.
The Acquiring Enterprise, AcquireCo, is a company incorporated in accordance with the Laws of British Columbia, Canada.
It is a newly formed special purpose vehicle established for the purpose of entering into and executing the proposed transaction.
The Acquiring Enterprise is indirectly controlled by MMG Limited (βMMGβ), a public company listed on the Hong Kong Stock Exchange. AcquireCo does not directly or indirectly control any enterprise; nor does it have any activities in Botswana.
The Primary Target Enterprise, Cuprous, is a company incorporated in accordance with the Laws of British Columbia, Canada. Its majority shareholder is Cupric Canyon Capital L.P., a company registered in the Cayman Islands.
In Botswana, the target enterprise
indirectly controls Khoemacau Copper Mining (Pty) Ltd [βKhoemacauβ] and Discovery Copper Botswana (Pty) Ltd [βDiscovery Copperβ].
The Competition Authority said it has established that the structure of the relevant market is not expected to significantly change upon implementation of the proposed merger as the proposed transaction is not likely to result in a substantial lessening of competition, nor endanger the continuity of service in the market of mining of copper and silver ores and the production, and sale or supply of copper concentrate in Botswana.
Furthermore, the proposed merger
will not have any negative effect on public interest matters in Botswana as per the
provisions of section 52(2) of the Competition Act 2018.
Pursuant to the provision of section 53 of the Competition Act 2018, the Authority has decided to unconditionally approve the proposed acquisition of 100% of the issued share capital in Cuprous Capital Limited together with its controlled subsidiaries and affiliates, by MMG Africa Ventures Inc.
In December 2023 , MMG announced that Botswana Minister of Minerals & Energy Honorable Lefoko Moagi has approved the transaction.
MMG is acquiring the Kalahari Copper Belt asset at a consideration of $1.89 billion ( over P25 billion) and is hoping to close the transaction by half year 2024.
SOURCE:The Projects Magazine
