South Africa’s antitrust tribunal on Wednesday approved the sale of Australia’s South32 thermal coal business to Seriti Resources Holdings, clearing another hurdle in the miner’s way to sealing the deal.
South32 announced the sale of South32 SA Coal Holdings Proprietary (SAEC) last year in November to begin its exit from energy coal, as investor pressure and climate change concerns prompt businesses to shift towards greener fuel sources.
The approval is contingent on Johannesburg-based Seriti meeting some conditions including employment terms and divestiture by SAEC of certain pending mining rights, the Competition Tribunal of South Africa said in a statement.
The deal has taken longer to close than anticipated, South32 said in October, and still needs to be approved by South African electricity generator, Eskom, the largest consumer of thermal coal in the country.
“While the transaction remains subject to material conditions, including approvals from Eskom, we continue to make progress in securing these and remain on-track to close during the March 2021 quarter,” South32 Chief Executive Officer Graham Kerr said.
(By Sameer Manekar; Editing by Vinay Dwivedi)