Sibanye-Stillwater CEO Neal Froneman
Photo by: Creamer Media
JOHANNESBURG (miningweekly.com) – Precious metals producer Sibanye-Stillwater has filed a submission with the South African competition authorities regarding the proposed R5.15-billion acquisition of platinum group metals (PGMs) producer Lonmin.
This is in accordance with the South African Competition Act, No. 89 of 1998, which requires the relevant stakeholders to be duly notified.
Analysts recently warned that the strength of the rand could make the transaction less attractive for Sibanye-Stillwater, but both companies on Friday confirmed that they remained fully committed to the deal, which was announced in December and is expected to close in the second half of the year.
“The proposed transaction remains in the best interest of stakeholders and will create a leading mine-to-market producer of PGMs in South Africa,” Sibanye-Stillwater CEO Neal Froneman commented.
Meanwhile, Association of Mineworkers and Construction Union (AMCU) on Friday threatened to interdict the transaction, owing to a lack of consultation with workers and the community. Citing AMCU president Joseph Matunjwa, news outlet eNCA reported that the union believe the sale would lead to “thousands of job losses”.