Pursuant to Section 60(4)(a)(ii) of the Competition Act, notice is hereby given on the decision made by the Competition Authority in respect of the proposed acquisition of all the remaining shares in Discovery Metals Limited by Cathay Fortune Investments Limited.
The Authority determined to authorise the proposed acquisition on the grounds that the analysis of the facts and conclusions of the merger assessment showed that there were no substantive competition concerns in the copper and silver mining industry, in Botswana. Given the fact that:-
- the proposed transaction is not likely to result in a substantial lessening of competition, nor endanger the continuity of the service, due to nature of the transaction;
- there is no likelihood for abuse of dominance given that the parties to the transaction have no historical background relating to abuse of dominance; and
- the proposed merger is expected to have no negative effect on public benefits, in Botswana by virtue of its implementation.
Pursuant to the provisions of Section 55 of the Competition Act, the Authority has approved the acquisition of all remaining shares in Discovery Metals Limited by Cathay Fortune Investments Limited.
The Authority is of the position that redundancies, if any, pertaining to the transaction should be in accordance with the applicable labour laws. Furthermore, the Authority expects that the parties will exercise restraint for the general workforce in view of the growing unemployment rate in Botswana.
However, as provided for under Section 66 of the Act, this approval does not override or negate any other mandatory statutory approvals or processes that any of the parties to this merger must comply with under the Laws of Botswana.
This approval does not extend to the transactions that could occur between China-Africa Liantuo Mining Co., Ltd and Cathay Fortune Investments Limited, resulting in a joint venture that is owned 75% by Cathay Fortune Investments Limited and 25% by China-Africa Liantuo Mining Co., Ltd, as stated in the submission made by the acquiring enterprise.
Dated this 18th day of December, 2012