The South African Competition Commission has unconditionally approved Coal of Africa Limited's acquisition of 100% of the shares in and claims against Pan African Resources Coal Holdings Proprietary Ltd, which was announced on 5 April.
The transaction remains conditional on approval by CoAL shareholders at a general meeting on 15 June.
Chief executive David Brown said: "Approval from the Competition Commission represents an important milestone in the process of securing completion of the transaction.
"We continue to make positive progress and work towards satisfaction of the outstanding conditions as soon as possible and will provide an update on expected timing of completion following CoAL's upcoming general meeting."
At 9:20am: (LON:CZA) Coal of Africa Ltd share price was -0.01p at 3.37p