HomeGoldUpdate on offer for Lonmin by Sibanye-Stillwater

Update on offer for Lonmin by Sibanye-Stillwater

The Competition and Markets Authority unconditionally cleared the All-share Offer for platinum group metals producer, Lonmin by precious metals mining company, Sibanye-Stillwater on 28 June 2018.

The CMA is the UK authority responsible for investigating any merger that could restrict competition.

The CMA’s clearance takes the companies one step closer to completion of the Offer.

The Offer remains subject to the satisfaction or (where applicable) waiver of the outstanding conditions.

Such conditions include, amongst others, the approval by the South African competition authorities and the approvals of Lonmin and Sibanye-Stillwater shareholders and the courts of England and Wales.

Lonmin remains fully committed to the offer and continues to engage constructively with Sibanye-Stillwater, the South African competition authorities and other stakeholders with a view to obtaining clearance in South Africa.

The offer is expected to close by the end of this year.

Previously announced

Neal Froneman, CEO of Sibanye-Stillwater has committed to saving between 18 000 and 20 000 Lonmin jobs.

Lonmin employs about 32 000 employees at present and has indicated that it needs and has plans to shed about 12 600 jobs over the next few years as it struggles to keep its head above water in a weak PGM market.

“Those 12 600 jobs losses are necessary for Lonmin’s sustainability, and this necessity will continue even under the Sibanye-Stillwater umbrella. Nonetheless, the remaining jobs in the company will be safe as we commit to operating the mines in a sustainable manner,” stated Froneman.