Competition Tribunal approves Glencore–Sibanye chrome venture

The Competition Tribunal has unconditionally approved a merger between Glencore Operations South Africa (GOSA) and Sibanye-Stillwater, paving the way for the two mining giants to consolidate the management of their chrome recovery plants across South Africa.

The transaction, which has no impact on ownership, will see Glencore and Sibanye coordinate the management of several chrome recovery operations they currently own and operate separately.

According to the Tribunal, the merger does not raise any competition concerns and is unlikely to negatively affect the market or lead to job losses.

GOSA is acting on behalf of the Glencore–Merafe Pooling and Sharing Venture, an unincorporated partnership through which Glencore and Merafe jointly manage chrome operations in the country.

GOSA is controlled by Glencore Holdings South Africa, a subsidiary of Glencore plc, the London-listed global commodities producer and trader. In South Africa, the Glencore Group is involved in coal mining, chrome ore production and trading activities.

Sibanye-Stillwater, listed on both the Johannesburg and New York stock exchanges, is a diversified multinational mining and metals processing group with a portfolio spanning platinum group metals (PGMs), gold and associated minerals.

The group also owns and operates multiple chrome recovery plants, which process by-products from its PGM operations.

The approved merger will allow the two companies to streamline management and operational processes across their chrome recovery facilities while maintaining independent ownership structures.

The Tribunal said its assessment found that the transaction was purely operational in nature and would not alter market dynamics in chrome production or sales.

BUSINESS REPORT