Author: Phuti Mashalane – Senior Associate
The Competition Commission (“Commission”) has prohibited the proposed intermediate merger involving Draslovka Holdings and Sasol South Africa Limited (“Sasol”).
In terms of this proposed transaction, Draslovka Holdings, a Czech-based producer of sodium cyanide, through its South African subsidiary, Draslovka SA (Pty) Ltd, sought to acquire assets and liabilities of Sasol’s sodium cyanide business including its sodium cyanide plant.
Sasol is the only producer of liquid cyanide in South Africa, and the gold mining sector is dependent on Sasol for the supply of liquid cyanide.
The Commission found that the transaction is likely to substantially prevent or lessen competition due to inevitable price increases that will arise from this transaction. The Commission further found that the transaction will have a substantial negative effect on the gold mining sector.
For more details on the Commission’s decision, please go to compcom.co.za.
For more information, please contact Phuti Mashalane on phuti.mashalane@lawtonsafrica.com
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