Samancor Chrome Holdings, Aquila Steel and Baosteel Mining are some of the companies involved in takeover.
The Competition Commission has recently approved the proposed transaction whereby China Baowu intends to acquire Sinosteel, without conditions.
The primary acquiring firm China Baowu is a company incorporated in accordance with the laws of the People’s Republic of China (PRC). China Baowu is wholly owned by the State-owned Assets Supervision and Administration Commission of the State Council of the PRC (Central SASAC), an agency of the Central Chinese Government. China Baowu controls several firms worldwide.
In South Africa, China Baowu controls the following firms: Aquila Steel (S Africa) (Pty) Ltd; Aquila Steel Thabazimbi (S Africa) (Pty) Ltd; Baosteel Mining South Africa (Pty) Ltd; and Baosteel Resources South Africa (Pty) Ltd (Baosteel Resources). China Baowu and all its subsidiaries shall collectively be referred to as the “Acquiring Group”.
During the early part of 2016 and latter part of 2017, Samancor Chrome successfully acquired the ferrochrome smelting assets and chrome mining assets from the business rescue practitioner of International Ferrometals, and likewise the smelting assets from the business rescue practitioners of ASA Metals through a series of transactions, the latter together with Sinosteel
Globally China Baowu focuses on the development of projects in the iron and steel industry along with projects in the new materials industry, smart service industry, industrial services industry, urban service industry and industrial finance industry. Relevant to the proposed transaction are China Baowu’s activities in South Africa relating to the supply of ferrochrome, chrome ore, and mill rolls markets.
Sinosteel is a company incorporated in accordance with the laws of the PRC. Sinosteel is also wholly owned by the Central SASAC. Sinosteel has several subsidiaries worldwide.
In South Africa, Sinosteel controls Sinosteel International South Africa (Pty) Ltd, Sinosteel South Africa (Pty) Ltd (Sinosteel South Africa), Deen Holdings Corporation Limited and Samancor Chrome Holdings (Pty) Ltd.
Worldwide Sinosteel is mainly engaged in the development and processing of metallurgical mineral resources, trading and logistics of metallurgical raw materials and products, and related engineering technical service and equipment manufacture. In South Africa Sinosteel is active in the mining and trading of chrome ore. Additionally, Sinosteel, through Sinosteel South Africa, is active in the trade of chrome ore and ferrochrome from South Africa to China. The Target Group also supplies mill rolls into South Africa.
The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. The Commission further found that the proposed transaction does not raise substantial public interest concerns.
