Lonmin's largest shareholder backs takeover by Sibanye-Stillwater
LONDON, Sept 3 (Reuters) - South Africa's Public Investment
Corporation (PIC) said it will support a takeover of platinum
producer Lonmin by precious metals producer
State-owned PIC is the largest shareholder in struggling
Lonmin, holding 29.2 percent and is Sibanye's second largest
shareholder, with an 11.2 percent stake.
Lonmin has been the biggest casualty in South Africa's
platinum mining industry which is under pressure from rising
costs and muted prices.
The deal would make Sibanye the world's No. 2 platinum
producer having purchased U.S.-based palladium miner Stillwater,
all of Aquarius Platinum and the Rustenburg operations of Anglo
Sibanye said in December it would buy Lonmin in an all-share
deal that is scheduled to close in the second half of the year,
although it still requires approval from both companies'
shareholders and South African regulators.
"The Public Investment Corporation has expressed support for
the deal right from the outset," the PIC said in a statement.
"We believe that it will assist in driving consolidation in an
In June, Britain's Competition and Markets Authority (CMA)
unconditionally cleared the transaction, saying it would not
require a second phase investigation.
"We would be very pleased if the PIC is supportive, and hope
that all shareholders will recognise the compelling rationale
for the proposed acquisition," Sibanye spokesman James Wellsted
said, adding that the company had not yet sought support from
Lonmin was not immediately available for comment.
(Reporting by Zandi Shabalala in London and Tanisha Heiberg in
Johannesburg; Editing by Kirsten Donovan)
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