Competition Tribunal dismisses SAEF bid to halt Thabong Coal merger with South32

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Thabong Coal is a subsidiary of Seriti Resources Holdings, which has long-term supply contracts with Eskom.

JOHANNESBURG – The Competition Tribunal has dismissed the South African Energy Forum (SAEF)’s application to intervene in a proposed coal mining merger between Thabong Coal and South32 SA Coal Holdings.

The Competition Commission had recommended that the tribunal give the green light to the proposed transaction.

Thabong Coal is a subsidiary of Seriti Resources Holdings, which has long-term supply contracts with Eskom.

The commission found that post the merger, Seriti would be the largest coal supplier to Eskom with a market share of up to 30%.

However, the forum which represents 30 small coal mining companies, said that they stood to suffer business losses as a result of the merger.

They also claim that it would result in 72% of Eskom’s coal supply coming from only the two companies.

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