South Africa: Sibanye buy of US platinum mine passes antitrust conditions

The $2.2bn prospective acquisition of US firm Stillwater Mining by South African mining company Sibanye Gold has edged further on Thursday after both companies passed antitrust conditions. The antitrust conditions fall under the US’s Hart-Scott-Rodino legislation.

Stillwater’s board accepted Sibanye’s $18-a-share offer in December and the deal is expected to be completed in the second quarter of 2017, subject to approvals by shareholders and South African authorities. If completed, the acquisition would further dilute Sibanye’s portfolio. It was entirely a South African gold producer until September 2015 but it will now become the world’s fourth-biggest platinum and third largest palladium producer as well.

Sibanye, which was created in 2013 out of former Gold Fields’ assets, began its expansion in the second half of last year with the purchase of two platinum mines. It paid $291m for a mine in Rustenburg, which it bought from Amplats; and almost exactly the same price again for platinum mines in South Africa and Zimbabwe that were owned by Aquarius Platinum.

Full Content: African Business Magazine

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