A Canadian-based company, EFR Australia PTY Limited, wholly owned by Energy Fuels Inc. (EFI), has acquired Kwale Titanium’s parent company, Base Titanium Limited, following approval by the Competition Authority of Kenya (CAK).
EFI is a mining development and production company that engages in the exploration, evaluation, development, and mining/production of uranium, vanadium, and rare earth element properties.
This is following approval by the Competition Authority of Kenya (CAK).
In the deal, EFR Australia PTY Limited will take over operations in Kenya a few months before the closure of operations by Base Titanium later this year.
Thereafter, the Victoria-based firm will resume operations.
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“The proposed transaction involves the acquisition of 100% of the issued and outstanding shares in the capital of Base Resources Limited by way of a scheme of arrangement in exchange for shares in the capital of Energy Fuels Inc. According to the parties, the rationale for the transaction is diversification of EFR PTY’s mining business,” CAK said.
“Therefore, the transaction qualified as a merger within the meaning of sections 2 and 41 of the Competition Act CAP 504. The Competition Act stipulates that a merger, or takeover, may occur when an undertaking directly or indirectly acquires control over another business within Kenya. This may happen through, among others, purchase/lease of shares, exchange of shares, vertical integration.”
Earlier, Base Resources Limited, an Australian firm that owns Base Titanium Limited in Kwale, informed the shareholders that they would receive 0.026 Energy Fuels common shares after the transaction.
Kwale’s Base Titanium Limited owns and operates a mineral mine in the coastal county and explores ilmenite, rutile, and zircon for export.
“One criterion of assessing a merger’s impact on competition is the post-merger market share of the undertakings involved in the transaction. Post-merger, the merged entity’s market share will not change since the target and the acquiring group do not operate in Kenya.”
“Therefore, the proposed transaction will not affect the structure and concentration of the market for Page 3 of 3 titanium minerals in Kenya. Therefore, the proposed transaction is unlikely to lead to substantially lessening competition in the market for titanium minerals in Kenya.”
