Britain’s Competition and Markets Authority (CMA) said on Tuesday, May 15, it would examine whether a takeover of miner Lonmin by South Africa’s Sibanye-Stillwater would reduce competition, reported Reuters.
The £285 million (US$386 million) deal, which would create the world’s No .2 platinum producer, faces several hurdles including Lonmin’s shrinking cash balance, a stronger rand and competition approval in South Africa.
Precious metals miner Sibanye-Stillwater made an all-share offer for London-listed Lonmin in December. The companies said at the time that the transaction was subject to approval from shareholders and competition clearance in Britain, South Africa and possibly the European Union.
Cash-strapped Lonmin is the world’s third-largest platinum producer and Sibanye-Stillwater is the fourth-largest.
Full Content: Reuters