Namibian Competition Commission Imposes Conditions on Mining Deal
The Namibian Competition Commission has given its first conditional approval of the year in a gold-mine transaction, imposing employment conditions that require the purchaser not to lay off any employees for a minimum of two years from the date of sale.
Unemployment concerns drive antitrust ruling
The Commission stated, per reporting on AllAfrica.com, that there were no reasons to block the deal on a lessening-of-competition grounds under section 47 of the Competition Act, but that it was “concerned about the effect of the sale on employment, hence the imposition of the above condition.”
AAT reported last year on the revision of the Namibian competition law to include consumer-protection provisions, which would allegedly bar M&A deals not only on pure antitrust grounds but also on a more broadly defined “unfairness” basis.
In the current deal, buyer Guinea Fowl Investments Twenty Six will acquire the Navachab gold mine from AngloGold Ashanti Namibia, which since last year has had gold-mining competition from one other player (B2Gold) in the domestic market.
First 2014 deal with conditions
We note that no other cleared transaction has had conditions imposed since the beginning of the calendar year, as shown by the agency’s May M&A update 2014: