Sibanye-Stillwater CEO Neal Froneman
Photo by: Creamer Media
The UK’s Competition and Markets Authority (CMA) has cleared precious metals miner Sibanye-Stillwater’s proposed acquisition of platinum producer Lonmin.
The CMA is the UK authority responsible for investigating any merger that could restrict competition.
Sibanye in December last year announced an all-share offer to acquire Lonmin, with the deal valuing the platinum producer at about R5.15-billion.
If the deal is concluded, current Lonmin shareholders will hold about 11.3% of the enlarged Sibanye group.
At the time of announcing the proposed offer, Sibanye CEO Neal Froneman said the acquisition would position the enlarged Sibanye group as a “leading mine-to-market” producer of platinum-group metals in South Africa.
Lonmin CEO Ben Magara further noted at the time that although Lonmin had an “enviable” mine-to-market business with great mining assets, projects and process technology, as well as a resilient workforce, the company continued to be hamstrung by its capital structure and liquidity concerns.
The South African competition authorities have yet to give their approval for the proposed transaction, which is also still subject to shareholder approval, as well as approval by the courts of England and Wales.
Both companies remain committed to the offer and continue to engage constructively with the necessary authorities.
The acquisition is expected to close in the second half of this year.