THE Competition and Tariff Commission (CTC) has approved the acquisition of Palatial Gold by a unit of Zimbabwe Stock Exchange-listed resources firm, RioZim.
BY BUSINESS REPORTER
Last year, RioZim and Falcon Gold Zimbabwe announced the transaction involving their units.
“The directors of RioZim Limited and Falcon Gold Zimbabwe [Falgold] are pleased to announce to their shareholders and other stakeholders that, following negotiations between the two companies, an agreement has been reached for RioGold (Private) Limited, a wholly-owned subsidiary of RioZim, to acquire 100% of Falgold’s wholly-owned subsidiary, Palatial Gold Investments (Private) Limited,” RioZim and Falcon Gold Zimbabwe said in a statement.
In a recent notice, CTC said it had approved the transaction which it classified as a horizontal merger.
Palatial Gold owns the Dalny Mine Complex, which consists of a gold processing plant, equipment, mining claims, mining infrastructure and mine compound.
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In its results for the year ended 2016, RioZim’s revenue grew by 15% to $65,2 million up from $56,5 million in 2015, despite Empress Nickel Refinery remaining under care and maintenance. The group closed the year with a net profit after tax of $2,5 million, the first net profit since the introduction of the multicurrency regime.