NAIROBI, Kenya- In a significant move for Kenya’s mining industry, the Competition Authority of Kenya (CAK) has greenlit the acquisition of Base Titanium Limited by EFR Australia PTY Limited.
This strategic transition will see EFR Australia, wholly owned by Canada-registered Energy Fuels Inc. (EFI), take over operations from Base Titanium in the coming months, ensuring a seamless continuation of mining activities in Kenya.
EFR Australia PTY Limited, an Australian-based company, will assume control over Base Titanium Limited as part of a larger acquisition plan.
This move involves the transfer of 100pc of Base Resources Limited’s issued and outstanding shares to Energy Fuels Inc.
This exchange is designed to diversify EFR PTY’s mining portfolio, a strategy highlighted by CAK in their approval statement.
The CAK’s endorsement underscores that the transaction qualifies as a merger under sections 2 and 41 of the Competition Act CAP 504.
This Act defines a merger as any scenario where an entity gains control over another business within Kenya, which can occur through various methods such as purchasing shares or vertical integration.
As part of the transition, Base Resources Limited has assured shareholders that they will receive 0.026 of Energy Fuels common shares for every share they own post-acquisition.
This ensures that shareholders are rewarded adequately, maintaining their investment’s value.
Base Titanium Limited, operating a mineral mine in Kwale, focuses on extracting ilmenite, rutile, and zircon for export.
This acquisition ensures that the operations will continue under the new management, with EFR Australia maintaining the same market dynamics.
CAK’s analysis revealed that the merger would not alter the market share or competition structure in Kenya’s titanium minerals sector.
Given that neither the target nor the acquiring group has operational footprints in Kenya, the market dynamics remain unchanged.
Therefore, the acquisition is unlikely to result in a substantial lessening of competition.
This strategic acquisition is part of EFI’s broader plan to expand and diversify its mining operations globally.
With a strong presence in uranium, vanadium, and rare earth elements, this merger with Base Titanium aligns perfectly with their growth objectives.
