Resumen
AbstractThis paper explores some of the key challenges and opportunities in the implementation of the broad-based black economic empowerment (BBBEE) deal of Kumba Resources, which subsequently led to the formation of Exxaro Limited, a large black-owned mining conglomerate in South Africa. Qualitative data were collected through in-depth interviews with a sample of 11 leaders involved directly in the deal. The data were content-analysed and the findings suggested that BEE transactions faced numerous challenges, including finding sustainable funding, securing suitable investors, merging various cultures, dealing with fronting and leadership, and planning management and leadership succession. The study concluded that the deal led successfully to both the equitable transfer of ownership and management and to the control of financial and economic resources to a wider base of the black population. However, several malpractices were identified which may have impeded the process of achieving the intended outcomes. The article provides recommendations, indicates limitations and proposes a way forward.