The planned transaction between JSE-listed Sibanye Gold and US-based platinum-group metals producer Stillwater Mining Company was announced on 9 December 2016.
This investigation by the Committee on Foreign Investment in the United States (CFIUS) follows the initial review period which concluded on 28 February 2017.
The notification is in line with standard CFIUS procedure for a transaction of this nature, said Sibanye Gold, who added that the review will be completed by no later than 14 April 2017, and may even be concluded sooner than that.
In light of this, Sibanye Gold said the transaction remains on schedule for closure during the second calendar quarter of 2017.
In addition to the CFIUS approval, it remains subject to approval by the holders of a majority of Stillwater Mining Company’s outstanding shares, the approval of the holders of a majority of Sibanye Gold’s present and voting shares, the approval of the related issuance of shares by Sibanye Gold in the context of a potential rights issue by the holders of at least 75% of the present and voting shares, and other customary conditions.
In February, Sibanye Gold received approval from the South African Reserve Bank for the acquisition.
Sibanye Gold said in December the transaction was consistent with its strategy of creating superior value for all of its stakeholders by enhancing the cash flow generation through value accretive growth, which underpins its strategy of paying sustainable, industry-leading dividends.
The company believes the transaction represents a transformational opportunity for it to acquire high-quality, low-cost, PGM assets at a favourable point in the cycle.
Sibanye Gold added that the transaction further expands its PGM portfolio with high-grade reserves that currently support over 25 years of mine life, and also provides near term, organic, low-cost growth through the Blitz project.