Johannesburg - Sibanye’s bid to become a serious platinum player is taking shape as its R4 billion offer for Aquarius Platinum gains traction.
The deal, announced on October 6, now just needs the majority of Aquarius shareholders to vote yes, at a meeting to be held in January, and competition authorities’ approval.
The deal should be wrapped up by the end of next April, says Aquarius in a statement on Monday.
Meanwhile, Sibanye notes its bid to buy Anglo American Platinum’s Rustenburg Platinum Mines unit - worth R4.5 billion and announced in September - is also proceeding and should also be complete in the first half of the year.
Sibanye’s move into platinum comes at a time when miners are battling to cut costs and face the twin challenge of a weak rand and metal prices at multi-year lows.
Sibanye says in a statement, “despite platinum group metal prices drifting lower since the transactions were announced, Sibanye remains committed to expeditiously concluding both transactions, which are each compelling in their own right”.
CEO Neal Froneman adds: ““As highlighted when these transactions were announced; whilst near term economic headwinds and supply side factors have resulted in downward pressure on metal prices, the long-term outlook for PGM demand remains constructive, as evidenced by continued growth in auto demand globally.
“Combining the contiguous Rustenburg Operations with Aquarius’ Kroondal mine, will enable us to deliver significant operational synergies, underpinning a sustainable business in a lower-for-longer price environment and providing leverage to a recovery in prices,
thereby enhancing value for shareholders.”
The purchases will make Sibanye at least the world’s eight-largest producer of the metal, which is used in catalytic converters.
IOL