Cape Town - Oakbay Investments has completed its acquisition of Optimum Coal Mine and six other target firms from Glencore for a total consideration of R2.15bn.
"The transaction demonstrates Oakbay’s firm commitment to South Africa," said Oakbay chief executive Nazeem Howa in a statement.
He said that Tegeta successfully met the Competition Tribunal’s condition that the merging parties avoid retrenching any employees of the target firms as a result of the transaction.
"As a result, Oakbay has successfully prevented the loss of more than 3 000 jobs, by avoiding what was an almost certain liquidation."
However, Howa added that these jobs along with the jobs of Oakbay’s more than 4 500 other employees, remain at risk if Oakbay is unsuccessful in re-establishing banking relationships with ABSA, Standard Bank, FNB and Nedbank.
“We are delighted to announce the completion of this acquisition which demonstrates that despite the threats by some of our country’s banks to cut their ties with Oakbay, we are committed to investment in South Africa and creating jobs.