- Regulatory body unconditionally approves merger
- Power Metal’s stake in Kalahari Mineral to increase to 87.71%
The Competition and Consumer Authority (CCA) has unconditionally approved the proposed acquisition of an additional 58.7 percent of the total issued share capital in Kalahari Key Mineral Exploration (Proprietary) Limited by Power Metal Resources Plc.
In approving the merger, CCA noted that Power Metal is already an existing shareholder of Kalahari Key Mineral Exploration, which is active in the mineral exploration sector, particularly the prospecting of metals with a specific focus on the exploration of nickel, copper and platinum group metals in the southern part of Botswana. The Authority says it therefore defined the relevant market, as the market for exploration of nickel, copper and platinum group metals in the southern part of Botswana.
According to CCA, the transaction will effectively amount to an internal restructuring with the Authority not expecting the merger to alter the market structure of the relevant market. “Thus, the Authority has not established any substantial lessening of competition concerns arising from the merger,” said CCA. “Furthermore, there is no acquisition of market dominance post-merger; nor any negative effect on public interest that was identified as per the provisions of section 52(2) of the Competition Act 2018.”
In a statement issued on the exploration company’s website, Power Metal said following the completion of the transaction, it would hold an 87.71 percent interest in Kalahari Key, which will hold a 100 percent interest in the Molopo Farms Complex Project targeting a large-scale nickel-platinum group metal discovery in southwest Botswana. The company is listed on the London Stock Exchange and also on the Botswana Stock Exchange. Power Metal’s activities are limited to funding exploration projects in which it has acquired interest through Botswana vehicles that drive investments on its behalf.