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COMMUNICATION OF THE ECOWAS REGIONAL COMPETITION AUTHORITY ON THE NOTIFICATION OF A PROPOSED ACQUISITION OF SOCIÉTÉ DES MINES DE TONGON S.A. (“Tongon SA”) and BARRICK GOLD CÔTE D’IVOIRE SARL (“BGCI”) BY ATLANTIC GROUP SA
Purpose of the notification of the proposed acquisition
The ECOWAS Regional Competition Authority (ERCA) received a merger notification from Atlantic Group SA concerning the Acquisition of Société des Mines de Tongon S.A. (“Tongon SA”) and Barrick Gold Côte d’Ivoire SARL (“BGCI”)
The proposed transaction constitutes wholly control of the businesses of the Tongon SA and Barrick Gold Cote d’Ivoire SARL, therefore, is subject to notification to the ERCA under the provisions of Regulation C/REG.23/12/21. The ATLANTIC GROUP SA will have direct control of the operations of both the Tongon Group and BGCI related to mining sector- exploration, production and sale of metal and pericious metal (gold).
The notification of the transaction to ERCA, for the purpose of prior authorization, is in accordance with Article 2 (1) (a) of Regulation C/REG.23/12/21 on the rules of procedure for mergers and acquisitions in ECOWAS, the Enabling Rules PC/REX.1/01/24 on the threshold for mergers and acquisitions; and the thresholds for dominant and monopolistic positions. As the acquisition involves entities in four (4) ECOWAS member States, it is, therefore, subject to notification to ERCA under the provisions of Regulation C/REG.23/12/21.
Concerned parties
Atlantic Group SA Atlantic Group S.A. (“Atlantic Group”), is a diversified pan-African conglomerate with more than 40 years of operational experience, headquartered in Abidjan, Côte d’Ivoire, which aims to contribute to Africa’s economic progress.
The company operates across several ECOWAS member states, including Côte d’Ivoire, in the following key sectors:
- banking, insurance,
- agro-industry and food distribution, and
- other industries and services, notably cement production, logistics and road freight transport, and the hotel industry through the operation of two hotels.
Société des Mines de Tongon SA (“Tongon SA”) is incorporated in the Republic of Côte d’Ivoire and is a mining company focused on the extraction of minerals and precious metals, primarily gold.
It owns and operates the Tongon gold mine located in Côte d’Ivoire, within the Nielle exploitation permit, approximately 55km south of the Malian border. The mine comprises multiple open pit operations. Initially designed for a ten-year lifespan, the mine’s operations were extended following successful exploration campaigns. A small or negligible amount of silver is also produced in the Tongon mine, as a by-product of gold production.
Barrick Gold Cote d’Ivoire (BGCI) is a company incorporated under the laws of Côte d’Ivoire, duly under number CI-ABJ-1996-B-206146, and having its registered office located at Abidjan Cocody Les Ambassades, Bd Latrille, 22 rue des Hortensias, Lot125, 01 BP 725.
BGCI is active in mining prospecting and exploration. It holds several explorations permits in the immediate vicinity of the Tongon mine in Côte d’Ivoire and provides administrative support to Tongon SA.
BGCI is currently 100% owned by BGCL, which itself is ultimately owned and controlled by Barrick Mining Corporation.
Concerned Acquisition
The proposed transaction concerns a sole control of Tongon SA and Barrick Gold Cote d’Ivoire in the production and sale of gold and as well as prospecting exploration in metal and precious metal (gold) in Cote d’Ivoire and through its parent company, Barrick Gold Group within the Community market.
Expected results of the acquisition
The proposed transaction will lead to a sole control of Tongo SA and BGCI, with intended purpose to diversify further the Atlantic’s portfolio of activities into natural resources to complement its existing businesses and to equally allow to reinforce Ivorian leadership in strategic industries and capture synergies on the long term across the supply chain via local financing, community engagements
The proposed transaction is expected to increase the exploration, production and sales of gold within the region and enhance the export of Cote d’Ivoire and contribute to ECOWAS integration without creating monopoly risk.
Rights of third parties
Pursuant to Article 44 (2) (a) (iv) of the ECOWAS Regional Competition Authority’s Manual of Investigation and Notification Procedures, third parties are invited to submit their comments to ERCA within thirty (30) days of the publication of this communication.
Such comments shall be accompanied by any documentation capable of substantiating the facts and analyses and sent confidentially to the following address:
ECOWAS Regional Competition Authority
Bertil Harding, Bijilo, The Gambia
P.O Box 4470
Or electronically at the following email address: registry@erca-arcc.org.