South Africa - 04

South Africa: Optimum Deal Highlights “State Capture” Concerns

Tegeta Exploration and Resources’ R2.15bn ($136mn) takeover of Glencore’s Optimum coal unit has attracted significant attention since the Competition Tribunal recently approved the deal on 23 February. Notable Tegeta shareholders include the Gupta family’s Oakbay Investments and Mabengela Investments, in which President Jacob Zuma’s son Duduzane reportedly owns a 45% stake. Though the Optimum deal involves the mining sector, it has several important implications for IOCs, as both the mining and oil and gas sectors currently fall under the Department of Mineral Resources.

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