THURSDAY, 11.00AM:
THE European Commission on Wednesday finally gave conditional approval to JCI’s proposed acquisition of Anglo American’s 26% stake in British multinational Lonrho, setting the stage for Lonrho’s bid to take over the troubled SA mining house.
One of the conditions set is a repetition of last April’s demand by the commission that Anglo reduce its stake in Lonrho to less than 10%. The terms will also force Anglo to abandon its claim to a seat on JCI’s board and “give up existing veto rights relating to certain decisions of JCI”.
The commission took pains to confirm that Anglo is not party to any voting or other arrangement with any JCI shareholder and that Anglo is not financing or guaranteeing any of the interests of JCI chairman Mzi Khumalo or executive director Brett Kebble.
Markets are still rife with speculation about the terms of any JCI-Lonrho deal. Khumalo insisted on Wednesday that JCI will merge with Lonrho, but analysts point out that JCI has few assets to offer, particularly if Kebble leaves with its gold assets. Lonrho has said it will buy out JCI in a hostile takeover, in return for which Khumalo will receive cash and a seat on Lonrho’s board.