South African labour union the Association of Mineworkers and Construction Union (AMCU) has moved to block the acquisition of struggling platinum miner Lonmin by gold and platinum producer Sibanye-Stillwater by appealing the transaction’s regulatory approval.
AMCU, which is the largest union at Lonmin, has filed an appeal with the Competition Appeal Court to overturn the Competition Tribunal’s November 21 decision clearing the all-share acquisition, Sibanye-Stillwater said late on Wednesday.
Sibanye-Stillwater said it remained committed to the Lonmin deal and that it would request an “urgent hearing” from the Competition Appeals Court.
While the companies argue that the combination of Sibanye-Stillwater and Lonmin through the £285-million all-share deal will create a larger and more resilient company, AMCU is contesting the potential 10 000-plus job losses at Lonmin.
The Competition Tribunal last month imposed a six-month moratorium on job cuts.
The transaction is expected to be concluded next year.