Stillwater’s $2.2 Billion Merger with Sibanye Gold Clears Key Final Federal Review
Published: April 19, 2017 |
Stillwater Mining Co. announced Monday it has cleared the final federal regulatory hurdle in its proposed $2.2 billion acquisition by South African firm Sibanye Gold Ltd.
The Committee on Foreign Investment in the United States found no national security issues with the proposed merger, which would place control of Stillwater’s two Montana mines and refining smelter under the South African firm, Stillwater officials said in a news release.
Sibanye announced in early March that the Committee on Foreign Investment would probe the proposed merger, and the company does not expect a delay in the timeline.
The merger now requires approval from shareholders of both companies at meetings scheduled April 25. Also, the holders of at least 75 percent of Sibanye stock must approve the issuance of shares related to the merger, according to a news release.
The two companies announced the merger in December. Stillwater is the largest U.S. producer of platinum and palladium, produced in two mines in the Beartooth valley in south-central Montana.
Platinum and palladium have numerous applications, including for the military, which is partially why this merger was scrutinized by the Committee on Foreign Investment, according to Bloomberg.
Platinum is used for aircraft turbine blades and coatings and engine seals and gaskets, according to the publication.
Sibanye’s largest shareholder is a Chinese conglomerate called Gold One Group Ltd., which is owned by several private and state linked firms, according to Bloomberg.
Sibanye officials have said they want to buy Stillwater and continue to grow the business in Montana.
If the deal is approved, Sibanye would become the world’s fourth largest producer of platinum and palladium. The company would make its first foray mining outside South Africa.
Shares of Stillwater, Montana’s largest mining company, opened Monday at $17.84. Sibyane traded at $10.55 to open Monday.
Source: (April 18, 2017) Billings Gazette
To stop by Stillwater’s website, CLICK HERE
Be in-the-know when you’re on-the-go!
FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.