Competition Commission conditionally approves Tegeta's Optimum Coal asset acquisition
Johannesburg, South Africa – Friday 12th February 2016: The Competition Commission has recommended that the proposed merger between Tegeta Exploration and Resources (Pty) Ltd (Tegeta) and Optimum Coal Mine (Pty) Ltd (OCM) be approved with conditions.
Tegeta is owned by Oakbay Investments (Pty) Ltd and Mabengela Investments (Pty) Ltd. OCM is controlled by Optimum Coal Holdings (Pty) Ltd (OCH). Both OCM and OCH are in business rescue.
Nazeem Howa, Chief Executive of Oakbay Investments, said:
“The Competition Commission’s recommendation that this deal is approved is good news for all of Optimum’s employees. As the Commission’s recommendation states, the transaction will not substantially prevent or lessen competition in the thermal coal market. I would also like to take this opportunity to restate our commitment to the future success of the business and to its employees. Through this acquisition we have prevented a liquidation that would have seen 3,000 people lose their jobs.”
About Oakbay Investments and the Gupta family
Oakbay Investments has invested more than R10 billion in South Africa. Oakbay Investments is 100% transparent - all numbers have been verified by one of the world’s most respected accountancy firms.
The Gupta family has a 23-year history of strong business performance and turnaround skills. This strong performance has come almost entirely via successful activity in the private sector, with less than 1% of the Group’s revenue coming from government contracts.
Sector diversification has also enabled Oakbay companies to deliver consistent growth and job creation throughout times of both economic boom and bust. For example, 47,000 jobs have been lost in South Africa’s mining sector between 2012 and 2015. In contrast, Oakbay’s mining companies have created 3500 of jobs in the sector.
Notes to Editors - For more information, please contact: firstname.lastname@example.org