The Competition Appeal Court of South Africa (CACSA) delivered its judgment on the appeal filed with the CACSA by the Association of Mineworkers and Construction Union (AMCU), in which CACSA dismissed AMCU’s appeal with costs.
As such the CACSA upheld the South African Competition Tribunal’s decision of 21 November 2018, approving the acquisition of Lonmin by Sibanye-Stillwater. Both mining companies remain fully committed to the offer.
Commenting on the judgement, Neal Froneman CEO of Sibanye-Stillwater says, “We are pleased that the Competition Appeal Court has upheld the decision of the Competition Tribunal. We are confident that the integration of Lonmin’s PGM assets and Sibanye-Stillwater’s adjacent PGM operations will ensure a more sustainable and positive future for these assets. We believe that the transaction continues to be in the best interest of all stakeholders.”
The transaction remains subject to the satisfaction or (where applicable) waiver of the conditions set out in the announcement of the transaction by Lonmin and Sibanye-Stillwater on 14 December 2017 and in the scheme circular published by Lonmin on 25 April 2019. Such conditions include, among others, the approvals of Lonmin and Sibanye-Stillwater shareholders and the courts of England and Wales.
Ben Magara, CEO of Lonmin says, “We welcome this decision as it clears the way towards the shareholder votes on 28 May. The combination creates a larger and more diversified company which we believe is in the best interest of Lonmin shareholders and other stakeholders.”