COMPETITION TRIBUNAL OF SOUTH AFRICA
Case No:25/LM/Mar12
In the matter between:
Anglo Ashanti Limited Acquiring Firm
And
First Uranium (Pty) Ltd Target Firm
Panel : Yasmin Carrim (Presiding Member),
Andiswa Ndoni (Tribunal Member)
and Medi Mokuena (Tribunal Member)
Heard on : 02 May 2012
Order issued on : 02 May 2012
Reasons issued on : 05 July 2012
Reasons for Decision
Approval
[1] On 02 May 2012 the Competition Tribunal (“Tribunal”) unconditionally
approved the merger between Anglo Gold Ashanti Limited (“AGA”) and
First Uranium (Pty) Ltd (“FUSA”).The reasons for approval follow
below.
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The Transaction
[2] The primary acquiring firm is Anglogold Ashanti Limited (“AGA”), a
public company incorporated in terms of the company laws of the
Republic of South Africa. AGA is not controlled by any firm. In South
Africa AGA have interests in AurMar (Pty) Ltd, Eastvaal Gold Holdings
Limited, Advanced Mining Software Limited, Masakhane Investment
Limited, Gold of Africa Collection, Orpheo (Pty) Ltd, Vyfhoek
Exploration and Mining Company Limited, Anglo Ashanti Health (Pty)
Ltd, Nuclear Fuels Corporation of SA (Pty) Ltd, Rand Refinery Limited
and Margaret Water Company. AGA also has shares in AGRe
Insurance Company (Pty) Ltd and iGolide (Pty) Ltd. In addition AGA
has an interest in a processing and uranium marketing company called
Nufor International Limited (“Nufor”), a public company incorporated in
terms of the company laws of United Kingdom.
[3] The primary target firm is First Uranium (Pty) Ltd (“FUSA”), a private
company incorporated in terms of the laws of the Republic of South
Africa. FUSA is a wholly owned subsidiary of First Uranium Limited
(“FUL”), a public company incorporated in terms of the laws of the
Republic of South Africa. FUL is a wholly owned subsidiary of First
Uranium Corporation (“FIUC”), a public and uranium producing
company listed on the Johannesburg Securities Exchange and is not
controlled by any single firm.
[4] AGA is a mining and exploration company with twenty mining
operations world-wide. Its South African Mining Operations comprise of
six deep-level gold mines and one surface gold operation. Nufor is
active in the processing and marketing of uranium concentrate
produced by South African gold mining companies, to nuclear power
generators around the world.
[5] FUSA is a holding company of Mine Waste Solutions (“MWS”) and
does not have any activities. MWS is in turn also a holding company of
Chemwes (Pty) Ltd (“Chemwes”) and is not active in the market.
Chemwes (Pty) Ltd (“Chemwes”) and is not active in the market.
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Chemwes is a gold and uranium tailings recovery operation located
near Stilfontein in Gauteng. Chemwes currently consists of 14 tailings
deposits from 3 gold uranium mines (Buffelsfontein, Stilfontein and
Hartebeesfontein) which were operated in the Vaal region over a
period of approximately 50 years.
The Rationale
[6] AGA seeks to increase the value of its uranium business and the
acquisition of FUSA is expected to increase AGA’s annual production
and provide steady-state, long-term additional gold production.
The relevant market and the impact on competition
[7] The Commission found that there is a horizontal overlap with regards to
the global market for the production and supply of gold and uranium.
AGA has a market share between 0-5% and FUSA has a market share
between 0-2%. Post-merger the merged entity will have between 5-
10% in the production and supply of gold. In the market for the global
production and supply of uranium, AGA has a market share of 0-5%
and FUSA is presently not active in this market at this stage.
[8] The Commission is of the view that the proposed transaction is unlikely
to substantially prevent or lessen competition as the market share for
the production and supply of gold and uranium remains low, a
conclusion that we agree with.
CONCLUSION
[9] There are no significant public interest issues. In light of the above we
accordingly approved the transaction without conditions.
____________________ 05 July 2012
Y Carrim DATE
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A Ndoni and M Mokuena concurring.
Tribunal Researcher: Thabani Ngilande
For the merging parties: Edward Nathan Sonnenbergs
For the Commission: Bheki Masilela
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