JSE-listed platinum group metals (PGMs) miner Impala Platinum (Implats) has concluded a framework agreement with Trade, Industry and Competition Minister Ebrahim Patel regarding its proposed acquisition of all outstanding shares in midtier PGMs miner Royal Bafokeng Platinum (RBPlat) that it does not already hold.
The terms of the agreement, which are subject to Implats obtaining a 50% +1 share stake in RBPlat, relate to issues such as employment; support for small, medium-sized and microenterprises; and localisation in terms of section 12A(3) of the Competition Act.
This is in addition to the Competition Commission’s recommendation, which finds that the acquisition is unlikely to result in any substantial lessening or prevention of competition in any of the relevant markets, and would be likely to result in public interest benefits.
Implats states that the successful conclusion of this framework agreement is a further positive endorsement by key stakeholders of the proposed transaction and the significant public interest benefits that are expected to result from it.
It also follows the memorandum of understanding signed with the National Union of Mineworkers – RBPlat’s majority union – and support from the host communities.
The proposed transaction remains subject to Competition Tribunal approval, which is the last remaining substantive condition to Implats’ offer, which fellow PGMs miner Northam Platinum is opposing.