CAK approves Saturn's Shanta Gold takeover
CAK approves Saturn's Shanta Gold takeover
Shanta Gold Limited, a mining enterprise registered in Guernsey, is set to be acquired by Saturn Resources Limited as the Competition Authority of Kenya (CAK) has given its unconditional approval to the proposed acquisition of its entire shares.
CAK stated in a release that the acquisition aligns with local competition regulations. The competition watchdog assessed the merger's impact on competition by examining the post-merger market share of the entities involved.
"Following the merger, the structure and concentration of the market for gold prospecting in western Kenya will remain unaffected since the acquiring company operates in a distinct market," CAK commented.
"Therefore, the transaction is unlikely to result in a significant reduction of competition in the gold exploration or prospecting market."
Furthermore, CAK confirmed that the acquisition passed its evaluation of its impact on the public interest.
"This transaction is not expected to raise any negative concerns regarding public interest. Specifically, there will be no loss of employment post-merger," the authority asserted.
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Shanta Gold, focuses its operations in East Africa, owning and managing two gold mines, New Luika and Singida, in Tanzania while Saturn Resources is a newly established Kenyan company specializing in gold exploration and currently holds mining licenses in the western region of Kenya
Its parent company, ETC Group, based in Dubai, is an investment firm with diverse assets spanning logistics, agrochemicals, insurance, fertilizers, and the distribution of fast-moving consumer goods.
Shanta Gold and Saturn Resources received unconditional approval from the Tanzanian Mining Commission early last month.
Per GlobalData, Tanzania ranked as the 22nd largest gold producer globally in 2022, experiencing an 8.11 percent decline in output compared to 2021. Over the period from 2016 to 2021, Tanzania saw a decrease in gold production at a compound annual growth rate (CAGR) of 3.6 percent. However, projections suggest a potential resurgence with an anticipated CAGR of 0.5 percent between 2022 and 2026.
