Competition Commission won’t lose sleep over sale of Rössing to the Chinese

Isaac Chikosi

China’s acquisition of the majority stake in Rössing Uranium Limited (RUL) will not lessen or prevent competition in the uranium market.

This was said yesterday by the Director of Mergers and Acquisitions of the Namibia Competition Commission, Johannes Ashipala, during a stakeholders meeting in Swakopmund where the public could have a say into the proposed transaction that would see China National Uranium Corporation (CNUC) acquiring the majority stake in the Rössing Mine.
Rio Tinto owns 68,62 % of RUL which is the owner of the Rössing Mine, situated 75 km east of Swakopmund.
In terms of Namibian law, all major mergers or acquisitions first have to be evaluated by the Namibia Competition Commission, to ensure such business deals don’t create local monopolies and other forms of anti-competitive market environments.  The Commission follows set procedure in evaluating these mergers and acquisitions. The stakeholders meeting in Swakopmund was part of that compulsory process.
Once the Commission is satisfied the sale of the Mine to China will not create negative market conditions for uranium, the sale would be approved and the process can take its course.
Ashipala’s viewpoint was augmented by similar sentiments by the Managing Director of RUL, Richard Storrie, who said the benefits of sales transaction by far outperforms the negative.