Advertisement
UK markets closed
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • FTSE 250

    19,884.73
    +74.07 (+0.37%)
     
  • AIM

    743.26
    +1.15 (+0.15%)
     
  • GBP/EUR

    1.1702
    +0.0008 (+0.07%)
     
  • GBP/USD

    1.2636
    +0.0014 (+0.11%)
     
  • Bitcoin GBP

    55,696.17
    -799.97 (-1.42%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • CRUDE OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD FUTURES

    2,254.80
    +16.40 (+0.73%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • CAC 40

    8,205.81
    +1.00 (+0.01%)
     

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 judgement.

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.

ADVERTISEMENT

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 comment.

"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 Johannesburg Editing by Emelia Sithole-Matarise and Edmund Blair)