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Record:
| Header: |
Harmony and Pamodzi |
| Case No : |
71/LM/Oct09 |
| Parties: |
Harmony Gold Mining Company Limited
AND
Pamodzi Gold Free State (Pty) Ltd |
| Case Rating: |
1 |
| Date: |
5/2/2010 |
| Time: |
10:00:00 AM |
| Case summary: |
The Competition Tribunal conditionally approved the merger between Harmony Gold Mining Company and Pamodzi Gold Free State.
The condition requires Harmony to adhere to the terms of an existing agreement, which it had entered into between unions, NUM and Solidarity. As a result of the provisional liquidation of Pamodzi Free State there were job losses of approximately 3000. However, Harmony had an agreement with the unions on a phased re-employment of 2000 people over a period of one year.
Virgile Mining Corporation (Virgile), who also put in a tender, had objected to the merger on the grounds that Virgile’s offer would not result in unemployment unlike the Harmony offer that would result in the loss of approximately 1000 jobs. In addition, Virgile argues that it was unfairly treated in the tender process. The Tribunal had invited Virgile to make oral representation at the hearing but the Tribunal this morning (11 December 2009) received an email from the CEO, Hettie Fourie that Virgile would not be present today. Harmony representatives advised the Tribunal at the hearing that they had received notification from Virgile that they were no longer opposing the transaction.
In terms of the Sale of Assets Agreements (North), Avgold intends to acquire the gold mining, processing and related business carried out by Pamodzi Free State under the name of President Steyn North Division (PSND) which business includes the operation of the North Steyn Shafts.
The PSSD will be directly acquired by Harmony and the PSND will be directly acquired by Avgold, a wholly owned subsidiary of Harmony.
On completion of the transaction the business of Pamodzi Free State comprising PSSD and PSND will be controlled by Harmony and Avgold.
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| Keywords: |
large merger, mining, production & supply of gold, international, gold mining, employment, liquidation |
| Judgment source: |
Competition Tribunal |
| Documents: |
71LMOct09.pdf
71LMOct09 Annexure HP1.tif
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| Last update user: |
tebogo mputle |
| Last update date: |
8/2/2010 12:37:54 PM |
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