Competition Commission approves Rössing Uranium Limited acquisition
27 Jun 2019 19:00pm
WINDHOEK, 27 JUN (NAMPA) The Namibian Competition Commission has approved the acquisition of Rössing Uranium Limited by the China National Uranium Corporation (CNUC).
In a statement issued on Thursday, the commissions Chief Executive Officer Vitalis Ndalikokule, said they approved the acquisition with conditions.
The commission found that the proposed transaction is unlikely to result in the prevention or substantial lessening of competition or in any underrating acquiring or strengthening a dominant position in the relevant market, he said.
He however added that the commission found that the merger does give rise to significant public interest concerns such as employment, the building of tenders for outsourced services, transfer pricing and dominance of the local uranium sector.
Clauses have thus been imposed to safeguard employment and local procurement and to maintain benefits currently derived in terms of taxes and royalties.
There shall be no merger specific retrenchment of employees of Rössing Uranium Limited for two years and Rössing Uranium Limited shall maintain 95 per cent local employees for the lifespan of the mine, the statement reads.
The mine also should not employ any non-Namibian person on management level on any basis other than a two-year contract and should not implement any change to its 30 July 2013 procurement policy, which will result in less favourable terms for local suppliers until the expiry of the lifespan of the mine.
To benefit the Namibian SMEs for procurement, for any services below N.dollars 250 000, RUL shall procure a minimum of 80 per cent of such service from companies which are majority Namibian-owned and registered and employ a minimum 75 per cent Namibian citizens, Ndalikokule said.