Peak Rare Earths’ Court Hearing Postponed Over Tanzanian Approval Delay
Peak Rare Earths has postponed its critical court hearing for Shenghe Resources' acquisition scheme due to a delay in Tanzanian regulatory approval, pushing the decision to 19 September 2025.
- Second Court Hearing deferred from 18 to 19 September 2025
- Delay caused by pending approval from Tanzania's Fair Competition Commission
- Shareholders retain right to oppose the acquisition scheme
- Shenghe Resources seeks full ownership via scheme of arrangement
- Uncertainty remains over timing of Tanzanian regulatory clearance
Regulatory Hurdles Stall Acquisition Progress
Peak Rare Earths Limited (ASX, PEK) has announced a delay in the Supreme Court of New South Wales hearing intended to approve Shenghe Resources (Singapore) Pte Ltd's proposed acquisition of the remaining shares in Peak. Originally scheduled for 18 September 2025, the hearing has been deferred to 19 September due to a critical regulatory approval from Tanzania still pending.
The acquisition, structured as a scheme of arrangement, requires clearance from the Fair Competition Commission of Tanzania (FCC). As of the morning of 18 September, this approval had not been secured, prompting Peak to seek a postponement from the Court. The delay underscores the complexities of cross-border regulatory compliance in mining sector transactions, especially when involving jurisdictions with emerging regulatory frameworks.
Shareholder Rights and Court Proceedings
Peak shareholders maintain the right to appear and voice opposition at the rescheduled hearing. The company has outlined the procedural requirements for shareholders wishing to contest the scheme, including filing a notice of appearance and any supporting affidavits prior to the hearing. This transparency ensures that shareholder interests remain front and center as the acquisition process unfolds.
Shenghe Resources, which already holds a significant stake in Peak, aims to consolidate full ownership through this scheme. The acquisition is a strategic move in the rare earths mining sector, where control over resources is increasingly critical amid global supply chain shifts.
Implications and Next Steps
The deferral highlights the inherent uncertainties in regulatory approvals that can impact transaction timelines and investor sentiment. While the delay is procedural, it raises questions about the pace at which Tanzanian authorities are processing foreign investment clearances in the mining sector. Market participants will be watching closely for the FCC's decision and any potential conditions attached to the approval.
Peak Rare Earths has provided multiple channels for shareholder inquiries, reflecting a commitment to clear communication during this pivotal phase. The outcome of the court hearing and regulatory approval will be decisive in shaping Peak’s ownership structure and strategic direction.
Bottom Line?
The coming days will be critical as Peak Rare Earths awaits Tanzanian clearance, with shareholder opposition still a wildcard.
Questions in the middle?
- When exactly will the Fair Competition Commission of Tanzania grant its approval?
- Could shareholder opposition at the court hearing alter the scheme’s outcome?
- What conditions might Tanzanian regulators impose on the acquisition?
