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South Africa: Mining firm breached merger agreement, regs say

By  |  November 16, 2014

South Africa’s Competition Commission has issued a Notice of Apparent Breach to the new mining company that resulted from the merger of Sibanye Gold and Newshelf, reports say.

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    The Commission’s acting deputy commissioner Hardin Ratshisusu confirmed the reports, adding that “this is a serious matter, as it involves an apparent breach of merger conditions.”

    Reports say the company had agreed not to retrench employees for a period of two years following the merge in order to secure approval for their transaction. The Commission says that agreement has been violated.

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    The company now has 10 days to respond to the notice with a plan to either remedy the breach or request a review of the matter by the Competition Tribunal, reports say.

    The Commission issued the notice after the National Union of Mineworkers accused the company of breaching their merger agreement.

    Full content: Mining Weekly

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