COMPANY NEWS IN BRIEF

Anglo warns production will be lowerAnglo American said production across its operations will be lower than expected in the next couple of years, the latest big miner to warn on its ability to hit output goals.While the largest miners continue to reap bumper profits from high commodity prices, the industry is also struggling to reach volume targets. Anglo’s operations have been hindered by everything from logistical issues and extreme weather to fallout from the pandemic. Glencore earlier this week lowered forecasts for 2023 on most of its commodities.The industry’s inability to achieve output ambitions is exacerbating already tight supplies as the world struggles to adapt to Russia’s increasing exclusion from the global economy and disruptions from Covid-19.Anglo said that its output of all commodities — with the exception of diamonds — will be lower next year than it had previously forecast, with lower expectations across the board for 2024.Estimates for platinum group metals were hit especially hard, as production likely will be lower for the next three years, with total output falling as much as 12.5% by 2025 from this year’s already lowered target.By lunchtime on Friday, Anglo was down 2%, while its Anglo American Platinum unit slumped almost 6% in Johannesburg.Anglo, which expects total production to grow 5% next year and again in 2024, also said costs will continue to rise as inflation hurts the industry. The company could take a writedown on a potash mine it’s developing in the north of England.-Fin24TymeBank signing up over 200 000 customers TymeBank booked a record 228 000 new clients in October, according to its majority shareholder, African Rainbow Capital (ARC), when the digital-only bank also saw a marked increase in average customer activity levels.The bank was onboarding between 130 000 to 140 000 customers per month in the first half of 2022. Earlier this week, when it finalised the acquisition of Retail Capital, TymeBank said it was on track to reach the 6 million customer mark before the end of this month."TymeBank maintained the momentum of onboarding new customers in November. In total, the bank onboarded 200 100 new customers. Customer activity levels were also maintained," said ARC.Meanwhile, outside of SA, TymeBank's international arm, Tyme Global, has successfully launched its digital bank, GOtyme, in the Philippines with its partners, the Gokongwei family. The bank targeted to enter its first international market in October, and in preparation for that, it seconded the former CEO of TymeBank in SA, Tauriq Keraan, to go lay the foundations in the Philippines in June. Keraan will also lead the bank's expansion to a third market, possibly in 2023."The launch is the next step in Tyme Global's international growth strategy to have a presence in select markets with the potential for high customer growth," said ARC in the trading statement.ARC said its other investments performed in line with expectations in the 10 months to 31 October. However, Kropz Elandsfontein is still experiencing delays in the production of bulk phosphate.-Fin24Shoprite to buy some Massmart storesThe Competition Tribunal has approved Shoprite's proposed acquisition of certain Massmart-owned supermarkets, wholesalers and liquor stores. It also gave Shoprite the go-ahead to buy Massmart's Massfresh business too, but with a lot of conditions.Shoprite initially made an offer to buy 56 grocery stores from Cambridge Food and Rhino Cash and Carry and 43 adjacent liquor stores earlier this year. It also wanted to buy 10 wholesale cash and carry stores, 2 wholesale liquor stores, Massfresh and Fruitspot. It made an offer of R1.36 billion to Massmart. The Competition Commission recommended that the Tribunal approve the deal in May.The Tribunal announced on Sunday that after a three-day merger hearing and various information requests, it has approved the proposed transaction with certain conditions to address identified competition and public interest concerns, including a conditionn that Massmart divest from ten stores identified as "highly problematic". Two of Shoprite's competitors, Pick n Pay and Spar; and the South African Commercial Catering and Allied Workers Union (Saccawu) raised concerns during the Tribunal's hearing. The Tribunal said they wanted the authorities to prohibit the acquisition.A non-confidential version of the conditions will be available on the Tribunal website in due course. But among other things, it wants some of the targeted "highly problematic stores" to be sold to other retailers not related to Shoprite, and some preferably to black retailers.-Fin24Spar chair steps downRetail group Spar announced on Friday that former CEO Graham O'Conner was stepping down as chairperson so that it can better deal with all claims being made against it. O'Conner will remain on the board.The company announced that O'Conner stepped aside "to allow the board to focus on the current allegations facing the company". The JSE-listed retailer has been hit with a wave of negative news of late, including that it is facing off with one of its store owners in Johannesburg amid allegations it inflated the price of a store.In another blow, fraud charges were filed against senior executives of Spar, including O'Conner, amid allegations that the grocer falsely claimed in 2019 it was owed money in order to gain control over certain supermarkets.In addition, Business Day reported that two 'fictitious' loans have been uncovered in a report compiled on behalf of Spar's board, which was looking into allegations of unfair treatment and racism. The governance of the company is also under scrutiny after O’Connor became Spar chairperson in March 2021, a month after retiring as CEO, which is at odds with the King Code's recommendation of at least a three-year break.O’Connor will continue as a non-executive director, while lead independent director Andrew Waller will serve as interim chair until a permanent replacement is found.-Fin24ABB's bribe scheme nearly collapsedA scheme by employees at Swiss industrial firm ABB to pay bribes for contracts at South Africa’s state-owned power utility nearly fell apart in a dispute over who would share in the spoils, US court filings show.The filings give a fresh look at corruption at Eskom, the power company plagued by deteriorating finances and regular blackouts. The case, by US prosecutors and regulators, also sheds light on evolving US policy toward companies like ABB that have repeatedly broken the law.ABB agreed 2 December to pay a US$315 million (R5 billion) criminal penalty over bribes to an Eskom official as it sought control and instrumentation contracts at the company’s Kusile coal-fired plant.Two ABB units pleaded guilty and the parent company was charged with violating the Foreign Corrupt Practices Act, the US foreign bribery law. Prosecutors will defer the case and drop it in three years if the company makes promised reforms.The case "highlights the expanding global network of countries fighting international corruption," Marshall Miller, a senior Justice Department official, said Tuesday in a speech.After the settlement, ABB CEO Bjorn Rosengren said the firm has changed."We take the Kusile matter very seriously," Rosengren said in a statement. "ABB has cooperated fully with all authorities and spent considerable time and effort – including launching a new code of conduct, educating employees and implementing an enhanced control system – to prevent something similar from happening again."-Fin24

COMPANY NEWS IN BRIEF

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Namibian Sun 2024-11-15

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COMPANY NEWS IN BRIEF

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Namibian Sun 2024-11-15

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