Cofece authorizes concentration of Ganfeng with Bacanora Lithium
The Federal Economic Competition Commission (Cofece) of Mexico authorized the concentration of Ganfeng with Bacanora Lithium.
First of all, on August 16, 2021, Ganfeng International Trading (Shanghai) Lirnited (Ganfeng International) notified Cofece of its intention to carry out a concentration, in accordance with the provisions of article 90 of the Federal Economic Competition Law (LFCE). .
Then, on September 9, 2021, Bacanora Lithium PLC (Bacanora Lithiurn, together with Ganfeng International, the Notifiers), adhered to the merger notification procedure.
The probable reserves of the Bacanora Lithium deposit in Sonora are estimated at 243.8 million tons and lithium carbonate, the ore from which the metal is extracted, amounts to 4.5 million tons.
Ganfeng
The notified operation consists of the following succession of acts:
- The acquisition by Ganfeng International of 28.88% of the capital stock of Bacanora Lithium.
- The acquisition by Ganfeng International of 22.5% of the capital stock of Sonora Lithium Ltd. (SLL), owned by Bacanora Lithium.
- Likewise, the subscription by Ganfeng International of 73 million 955,680 new shares of SLL, in order to increase its shareholding to 50% in said company.
- Finally, the acquisition by Ganfeng International of approximately 71.12% of the capital stock of Bacanora Lithium, through a takeover bid.
As part of the consideration, Ganfeng International will allow the outstanding shares of Zinnwald Lithium PLC, currently owned by Bacanora Lithium, to be distributed to its current shareholders.
Derived from the operation, Ganfeng International will indirectly acquire participation in the capital stock of: i) Bacanora Chemco, S.A. de C.V.; ii) Minera Sonora Borax, S.A. de C.V.; iii) Mexilit, S.A. ~ de C.V.; iv) Minera Megalit, S.A. de C.V.; v) Operadora de Litio Bacanora, S.A. of C.V. and vi) Minerales Industriales Tubutama, S.A. de C.V., owned by Bacanora Lithium.
The operation has a non-competition clause.
From the analysis carried out by Cofece, it is considered that, if the notified operation were carried out, it would have little probability of affecting the process of free competition and economic competition.
