Implats gets nod from regulator for RBPlat takeover

After previous delays, the Competition Tribunal has now cleared the way for Impala Platinum (Implats) to acquire Royal Bafokeng Platinum (RBPlat), but Implats will now have to contend with rival platinum miner Northam, which last week put in a formal bid for RBPlat after months of hinting at the possibility.

The tribunal announced on Wednesday that it had approved the merger subject to a package of competition and public-interest conditions that included Implats honouring its current contracts, as well as securing commercial terms for the renewal of contracts. The conditions make provision for employment-related conditions such as a moratorium on any merger-related retrenchments, and for local investment initiatives to benefit local communities as well as local procurement obligations and commitments towards SMME suppliers.

The conditions further seek to promote a greater spread of ownership via an employee share-ownership scheme.

The approval process by competition authorities were delayed by Northam’s bid to become involved in the hearings and give evidence on the effect of such a deal on the local platinum mining industry.

As previously reported by Business Day, in an offer that values RBPlat at about R50bn, Northam offered R172.70 a share in cash and shares for the company, topping a R150 (cash and shares) per share open-ended offer by Implats.

Northam holds a 34.52% stake in RBPlats, against Implats’s 41%.

The victor will most likely ultimately be decided by the Public Investment Corporation, which holds more than 9% of RBPlat. It is also the biggest shareholder in Impala and Northam, with 20% and 17%, respectively.

NORTHAM LAST WEEK PUT IN A FORMAL BID FOR RBPLAT AFTER HINTING AT THE POSSIBILITY