NACC Approves Anglogold and Guinea Fowl Merger

The Namibian Competition Commission (NaCC) has approved a merger between AngloGold Ashanti Namibia and Guinea Fowl Investments Twenty Six Limited.

Guinea Fowl is a wholly-owned subsidiary of a private mining investment group, the United Kingdom-based QKR Corporation which purchased the Navachab Gold Mine from AngloGold Ashanti. The mine is located at Karibib in the Erongo Region.

NaCC Chief Executive Officer Mihe Gaomab II said that the commission investigated the proposed transaction and considered all relevant information at its disposal on 28 May.

The commission resolved to approve the proposed merger between AngloGold Ashanti Namibia and Guinea Fowl Investments Twenty Six Limited subject to one condition on employment. The condition is that there shall be no retrenchments of employees of the merged undertakings from the Navachab Gold Mine for a period of two years from the date of approval of the merger by the NaCC.

Gaomab noted that retrenchments do not include voluntary separation or voluntary early retirement retrenchments which are not merger specific and retrenchments which are merger specific agreed with the commission in writing after the approval of the merger, in the event that the merged undertakings experience aerse economic circumstances which necessitate such retrenchments.

In order for the commission to properly monitor the above condition the merged undertakings are required to submit compliance reports at intervals as determined by the commission.

Navachab is an open-pit mine which began its operations in 1989 and has a processing plant that handles 120 000 metric tonnes a month. The mine produced 63 000 ounces of gold in 2013 and 74 000 ounces in 2012.

On 10 February, AngloGold Ashanti announced that it signed a binding agreement to sell Navachab to a wholly-owned subsidiary of QKR Corporation Limited. The agreement provided for an upfront consideration based on an enterprise value of US$110 million, which will be adjusted to take into account Navachab’s net debt and working capital position on the closing date of the transaction.


Source : The Namibian