LONDON (AFX) - Harmony Gold Mining Company Limited said the South African Competition Tribunal has cleared its proposed merger with rival Gold Fields, provided job losses as a result of the tie-up are minimised.
The Tribunal ruled that the merger can proceed so long as no jobs below Patterson Grade C are lost for two years, and that no more than 1,000 positions above that grade are lost in total, Harmony said.
The tribunal's decision clears the way for Gold Fields shareholders to vote on the proposed merger, which would create the world's biggest gold producer.
Gold Fields' management has resisted the proposal, claiming it undervalues the group's assets. Harmony, which is offering 1.275 new Harmony shares for each Gold Fields share, has been pursuing Gold Fields since October last year.
"Despite all of the frustrating actions brought about by Gold Fields in the lead up to the Tribunal process, our merger application has been unsurprisingly approved as per the recommendation from the Competition Commission," Harmony chief executive Bernard Swanepoel said in a statement.
"Gold Fields shareholders can now finally have a say in the matter."
Swanepoel also signalled that Harmony has little scope to raise its offer, describing it as "full and fair."
Harmony's offer expires on May 20, and will not be extended.
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The Tribunal ruled that the merger can proceed so long as no jobs below Patterson Grade C are lost for two years, and that no more than 1,000 positions above that grade are lost in total, Harmony said.
The tribunal's decision clears the way for Gold Fields shareholders to vote on the proposed merger, which would create the world's biggest gold producer.
Gold Fields' management has resisted the proposal, claiming it undervalues the group's assets. Harmony, which is offering 1.275 new Harmony shares for each Gold Fields share, has been pursuing Gold Fields since October last year.
"Despite all of the frustrating actions brought about by Gold Fields in the lead up to the Tribunal process, our merger application has been unsurprisingly approved as per the recommendation from the Competition Commission," Harmony chief executive Bernard Swanepoel said in a statement.
"Gold Fields shareholders can now finally have a say in the matter."
Swanepoel also signalled that Harmony has little scope to raise its offer, describing it as "full and fair."
Harmony's offer expires on May 20, and will not be extended.
newsdesk@afxnews.com
mn/hjp
COPYRIGHT
Copyright AFX News Limited 2005. All rights reserved.
The copying, republication or redistribution of AFX News content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
AFX News and the AFX Financial News logo are registered trademarks of AFX News Limited
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
© 2005 AFX News
