South Africa’s Sibanye Gold has announced it will complete previously announced acquisitions of Anglo American Platinum’s (Amplats) Rustenburg operations and Aquarius Platinum despite sliding prices of the commodity.
In October 2015, Sibanye announced an offer to acquire Aquarius for $294m and signed a deal in September 2015 to acquire Anglo American Platinum’ loss-making Rustenburg Platinum Mines (RPM) for $331m.
Sibanye Gold CEO Neal Froneman said: "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."
Sibanye plans to post the offer document to Aquarius shareholders by mid-December, which will be voted on at the special general meeting set to take place in January 2016.
With regard to this transaction, the company said the South African Competition Commission filing was submitted on 13 November.
Approvals by the South African Competition Commission and Competition Tribunal are expected to be obtained by the end of March 2016.
All other consents needed for the Aquarius transaction have been obtained and the transaction is expected to be closed by the end of April 2016.
Meanwhile, the acquisition of the Rustenburg operations is currently being finalised and the offer document is expected to be posted to the shareholders of Sibanye by mid-December 2015.
The shareholders meeting is expected to take place in mid-January 2016.
Sibanye also obtained all necessary consents from the South African Department of Mineral Resources.