The Competition and Markets Authority has unconditionally cleared Sibanye-Stillwater’s proposed acquisition of Lonmin following its investigation.
The offer remains subject to the approval of the offer by the South African competition authorities and the approvals of Lonmin and Sibanye-Stillwater shareholders and the courts of England and Wales.
The Competition and Markets Authority (CMA) is the UK authority responsible for investigating any merger that could restrict competition.
Commenting on today’s announcement by the CMA, Neal Froneman, CEO of Sibanye-Stillwater, and Ben Magara, CEO of Lonmin, said:
“We are very pleased to have received the CMA’s clearance, which takes us one step closer to completion of the offer.”
“We remain excited about the proposed transaction, which we consider to be in the best interest of our stakeholders. We look forward to the combination of the businesses creating a leading mine-to-market player with enhanced scale and resources, able to compete more effectively”.
Both Sibanye-Stillwater and Lonmin remain fully committed to the offer and continue to engage constructively with the South African competition authorities with a view to obtaining clearance in South Africa.
The offer is expected to close in the second half of this year.
Froneman 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,” states Froneman.