JOHANNESBURG - Trade union Solidarity believes the proposed R5billion Sibanye- Stillwater acquisition of Lonmin, the world's third-biggest platinum producer, was a recipe for contributing to economic growth.
Connie Prinsloo, Solidarity's deputy general secretary, said yesterday that the union supported the deal. “This deal will make a positive contribution towards economic growth and stability in the sector in the longer term, which in turn would further sustainability,” Prinsloo said.
As part of the deal, Lonmin shareholders’ stake in the overall Sibanye-Stillwater group will be 11.3percent, while Sibanye-Stillwater will hold the balance of 88.7percent.
The deal is expected to be completed by the second half of 2018. “We trust that new job opportunities will be created under the leadership of Sibanye-Stillwater’s management to hopefully keep the retrenchments Lonmin intended to implement over a period of three years in check, or will reduce the number of retrenchments,” Prinsloo said.