South Africa's Sibanye wins final regulatory go-ahead for Lonmin deal
(Adds Sibanye-Stillwater and Lonmin comment)
CAPE TOWN, May 17 (Reuters) - South Africa's Competition
Appeal Court gave the green light on Friday to
Sibanye-Stillwater's takeover of Lonmin that
aims to create the world's second-largest platinum producer.
Lonmin's biggest mining union, the Association of
Mineworkers and Construction Union (AMCU), had filed an appeal
trying to block the deal or have it re-examined to prevent job
cuts after an earlier approval by the Competition Tribunal.
"The appeal fails," Judge Dennis Davis said in his written
Sibanye can now implement the all-share deal that values
Lonmin at 226 million pounds ($289 million) on the basis
approved by the Competition Tribunal last November, said HB
Senekal, a lawyer representing Sibanye who was in court.
AMCU's case centred on layoffs, a sensitive issue in South
Africa, where unemployment is at 27% according to latest data.
AMCU president Joseph Mathunjwa could not be reached for
"The combination creates a larger and more diversified
company which we believe is in the best interest of Lonmin
shareholders and other stakeholders," Lonmin Chief Executive Ben
Magara said in a statement.
Lonmin has been cutting thousands of jobs to reduce costs.
The ruling, a victory for Sibanye, will see investors in
cash-strapped Lonmin exchange their shares for a roughly 11
percent stake in a more stable precious metal producer.
Shareholders are set to vote on the deal on May 28.
($1 = 0.7825 pounds)
(Reporting by Wendell Roelf in Cape Town and Tanisha Heiberg in
Editing by Emelia Sithole-Matarise and Edmund Blair)
First Published: 2019-05-17 11:10:35
Updated 2019-05-17 19:44:59
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