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.
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