(Ecofin Agency) - Tegeta Exploration and Resources (TER) obtained on Tuesday approval from the Competition tribunal to take over Optimum Coal Mine (OCM) and six other target firms. The authority said the approval was valid only on the condition that there was no retrenchment of employees as a result of the merger.

The tribunal backed its decision saying the transaction is unlikely to substantially prevent or lessen competition in the market. Nazeem Howa, Chief Executive of Oakbay Investments and one TER’s shareholders after the approval said: “We are delighted that the Competition Tribunal has ruled on the merger. Through this transaction, we have prevented the loss of more than 3,000 jobs, by heading off an almost certain liquidation. We are committed to the future sustainability of Optimum and look forward to announcing our strategy for the business going forward.”

The agreement, announced last December, will help complete the rescue process initiated as the company was experiencing serious financial challenges.

Let us recall that OCM, coal supplier, produces 10 million tons of the commodity each year.

Louis-Nino Kansoun