ORES & ALLOYS BLOG: Samancor's well-timed ASA purchase absorbs last idled producer

The acquisition of ASA Metals by a joint venture formed by Samancor Chrome and Sinosteel will tie up the last of three South African ferro-chrome producers that shut in 2015-2016.

The deal was approved this week by South Africa’s Competition Commission, which is recommending the Competition Tribunal approve it on the basis it is unlikely to reduce competition in the ferro-chrome market.
ASA Metals is the second of three failed producers to be taken over by Samancor, which restarted the South African chrome-producing arm of International Ferro Metals furnaces (IFM) in November 2016.
Neither takeover was straightforward; negotiations over a previous offer by another joint venture between Samancor and Sinosteel failed in August 2016, prompting ASA to invite fresh offers.
And Samancor had to reduce its offer for the IFM business by 28% early last year following a chrome ore supply dispute between IFM and one of its suppliers.

But the latest deal is likely to have been worth the wait for Samancor, especially...

Published

Janie Davies

April 28, 2017

12:42 GMT

London