The South African Competition Tribunal has approved with conditions the merger between Royal Bafokeng Platinum (RBP)with Maseve Investments 11.
The approval is subject to certain conditions, agreed to by RBP , focused on jobs in the transition of ownership.
Conditions include that RBP employs 115 employees at its concentrator plant and gives preference to the retrenched employees.
To the extent that these employees are no longer available RBP will endeavour to source employees from the local community in Rustenburg.
RBP will take over 20 permanent employees of the target firm and give preference to retrenched employees for job opportunities likely to occur in the future and is required to circulate the conditions to the merger to all employees
Competition Tribunal approval is a key step forward in the planned transaction.
The platinum group executed definitive agreements on November 23, 2017 to sell all of the rights and interests in Maseve in a transaction valued at approximately US$74 million.
RBP is to first acquire the concentrator plant and certain surface assets of the mine for payment of $58 million in cash to Maseve, conditional on certain approvals and conditions precedent which is expected to close in February 2018.
Following, will be for RBP to acquire 100% of the shares in Maseve and all shareholder loans owed by Maseve for an aggregate consideration equal to $16.0 million.
Step 2 of the transaction will require the approval of the Department of Mineral Resources and other conditions precedent, which are expected to be completed in mid-2018.
Competition Tribunal communications, Chantelle Benjamin said the merging parties have agreed to the conditions.
