Global commodities company Glencore International is acquiring Mercuria Energy Group Holding's 15 percent stake in South Africa's Optimum Coal Holdings (OCH), Reuters reports. Baar, Switzerland-based Glencore, which intends to take over the entire company worth nearly $1 billion, had recently purchased 28.46 percent of OCH ordinary shares. It also holds options to completely buy out several shareholders. All deals are subject to approval from competition authorities.
Glencore has been seeking to gain control of OCH since June along with its local partner, local politician-turned-businessman Cyril Ramaphosa. The agreement in principle consists of Mercuria's marketing agreement for coal from the Koornfontein mine and future output from the Optimum mine. Mercuria will be paid in U.S. dollars while other shareholders that have sold to Glencore are being remunerated in South African rand. The deal will make Glencore South Africa's fourth-largest coal exporter.
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