Glencore International, a FTSE 100 mining company, has acquired a controlling interest in Optimum Coal Holding.
The miner, which already owned a 31.21% stake, purchased a further 36.56% with its local Black Economic Empowerment partner, Cyril Rapmaphosa.
Glencore and its partner are now required to make a mandatory offer to acquire the shares of all shareholders of Optimum. They will offer the remaining shareholders 38 South African Rand per Optimum share (£3.14).
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Tor Peterson, director of the Coal/Coke commodity department, said: "Optimum will add to our coal presence in South Africa and will be highly complimentary to our joint venture Shanduka Coal and our investment in Umcebo. South Africa is an important producer to supply the growing Chinese and Indian markets, so we are delighted to add to our business in the country with our partner Cyril Ramaphosa."
NR
-
Rail fares could spike by 5.8% next year – how to save on train travelJuly’s RPI inflation reading tends to determine rail fare hikes in the following year. We look at how much your train tickets could cost, and how to save money
-
'Governments are launching an assault on the independence of central banks'Opinion Say goodbye to the era of central bank orthodoxy and hello to the new era of central bank dependency, says Jeremy McKeown
