Highly placed sources told BusinessWeek that the deal, the largest in the country’s private sector, is on track to be finalised in the first half of the year, as originally anticipated by the parties involved.
On Wednesday, the CCA confirmed the latest developments, noting that its assessments showed that the sale would not have any negative effect on public interest matters as per the provisions of the Competition Act.
“The Authority has decided to unconditionally approve the proposed acquisition of 100% of the issued capital in Cuprous Capital Limited together with its controlled subsidiaries and affiliates by MMG Africa Ventures,” reads the CCA’s statement.
The Authority further states that the structure of the relevant market is not expected to significantly change upon implementation of the deal, as the proposed transaction is not likely to result in a substantial lessening of competition. The transaction will also not endanger the continuity of service in the market of mining of copper and silver ores as well as the production and sale or supply of copper concentrate in Botswana.
Both parties notified CCA about the transaction on December 4 last year and the merger assessment was completed on January 29, 2024.
The deal gives MMG access to a top-producing asset in the rich but undeveloped Kalahari Copperbelt. The acquisition is expected to significantly increase the MMG group’s business scale and bring increased exposure to copper with greater geographical diversification of earnings.
Formed in 2009, MMG operates and develops copper, zinc and other base metals projects across Australia, the Democratic Republic of Congo and Peru. The Hong Kong-listed firm’s largest shareholder is the state-owned China Minmetals which holds 68% equity.
