South African firm cleared for $2bn US mine merger

South Africa’s Sibanye Gold has been cleared to take over two mines in Montana owned by the Stillwater Mining Company.

South Africa’s Sibanye Gold has been cleared to take over two mines in Montana owned by the Stillwater Mining Company.

The merger was approved by the The Committee on Foreign Investment in the United States after it reached consensus there was no national security concerns.

The close scrutiny of the deal is due to Stillwater being the country’s largest producer of platinum and palladium which are used by the US military in aircraft and vehicles.

Sibanye Gold’s offer is worth $2.2 billion and will include not only two mines in the Western state of Montana but also Stillwater’s refining smelter in the region.

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 the company.

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