Kumba welcomes Competition Tribunal decision
16 August, 2006
Kumba Resources Limited (Kumba) welcomes the decision announced today by the Competition Tribunal to unconditionally approve the merger of Kumba's coal assets with those of Eyesizwe Coal within a newly created company that will be named Exxaro Resources Limited (Exxaro).
This forms part of the empowerment transaction announced by Kumba in October 2005 that will involve the unbundling of Kumba into two separately listed entities, namely Exxaro and Kumba Iron Ore Limited.
The Competition Tribunal has also unconditionally approved the proposed acquisition by Exxaro of Namakwa Sands, Anglo American's mineral sands operations. In terms of the empowerment transaction, Anglo American granted Exxaro an option to acquire 100% of Namakwa Sands.
"We are pleased with the decision as it represents a significant step in the process to list the two companies which is expected to take place in the fourth quarter of 2006," said Dr Con Fauconnier, Kumba's chief executive.