CAK approves Shanta Gold's buyout by Saturn Resources

The Competition Authority of Kenya (CAK) has unconditionally approved the proposed acquisition of Shanta Gold Limited’s full shareholding by Saturn Resources Limited.

Saturn Resources is a newly incorporated company in Kenya dealing in gold exploration. It holds mining licences in the western Kenya region.

Saturn’s parent company, ETC Group, is a Dubai-headquartered investment company with assets across logistics, agrochemicals, insurance, fertilisers, and distribution of fast-moving consumer goods.

Shanta Gold on the other hand is a mining company registered in Guernsey but focusing operations in East Africa. It owns and operates two gold mines in Tanzania.

CAK in a statement said Shanta Gold’s acquisition by Saturn Resources meets local competition guidelines.

The competition watchdog said it assessed the merger’s impact on competition as the post-merger market share of the undertakings involved in the transaction.

“Post-merger, the market structure and concentration of the market for gold prospecting in western Kenya will not be negatively affected since the acquirer is not in a similar market,” CAK said.

“Therefore, the transaction is unlikely to lead to a substantial lessening of competition in the market for gold exploration or prospecting.”

CAK said the acquisition also passed its assessment of the impact it will have on public interest.

“This transaction will not elicit negative public interest concerns. Specifically, there will be no employment loss post-merger,” the authority said.

Early last month, Shanta Gold and Saturn Resources received unconditional approval from the Tanzanian Mining Commission.