EPaper

Northam to have its say on merger

Katharine Child

Platinum miner Northam has been granted the right to give evidence at the merger hearings between Impala Platinum and Royal Bafokeng Platinum, a move that is likely to further delay the takeover bid.

Platinum miner Northam has been granted the right to give evidence at the merger hearings between Impala Platinum and Royal Bafokeng Platinum, a move that is likely to further delay the takeover bid.

In November, Implats offered R150 a share for all of RBPlat, after steadily increasing its ownership to 37.83% in a deal that was to have been completed by August 8.

Northam ’ s shareholding of RBPlat is 34.95%, just below the 35% threshold that would require it to make a buyout offer.

The Implats-RBPlat deal could create the world’s biggest producer of platinum group metals. Northam has fewer mineral resources that are located mainly in Limpopo and Mpumalanga.

In April, the Competition Commission recommended the Implats bid, subject to the Competition Tribunal’s approval. Northam applied to intervene in the tribunal process last month, a move Implats said was sought merely to delay the deal when it could not afford to buy RBPlat itself. But Northam has succeeded in convincing the tribunal that it would be materially affected by the proposed deal and will now have access to confidential reasons given by the commission for recommending the Implats-RBPlat merger. The tribunal will allow Northam to give evidence only on the proposed merger’s effects on the ore-processing market and on junior miners.

Junior miners and Northam pay the big platinum miners — Implats, Amplats and Sibanye-Stillwater — for smelting services.

Northam has argued that the Implats-RBPlat merger would result in fewer smelting services and junior miners could face higher prices as competition wanes. Implats denies this, saying it is expanding its facilities.

To sweeten the deal, Implats has offered workers shares in the company.

The competition authorities are legally obliged to assess how mergers affect black ownership and workers before approving buyouts.

Northam had wanted to query the structure of the proposed worker shareholding scheme, but that was rejected.

The tribunal did not give reasons for its order.

FRONT PAGE

en-za

2022-06-24T07:00:00.0000000Z

2022-06-24T07:00:00.0000000Z

https://bdmobileapp.pressreader.com/article/281509344864672

Arena Holdings PTY