Royal Bafokeng discards Implats takeover, goes for Northam deal

In a rebuff to Impala Platinum (Implats), which announced last month that it wanted to buy Royal Bafokeng Platinum (RBPlat), Royal Bafokeng Holdings (RBH) announced a deal with Northam Platinum instead.

In a transaction valued at R17.2 billion, Northam will buy up to 33.3% of RBH’s stake in RBPlat. RBH currently holds 36.1% of the platinum producer. 

The transaction will be funded by a mix of cash (R8.6 billion) and shares, which will result in RBH holding 8.7% in Northam.

The deal will help Implats exploit synergies from deposits adjacent to its extensive Rustenburg mining complex. The amalgamated company will produce 3.45 million ounces a year, overtaking Sibanye Stillwater and Anglo American Platinum in terms of output and rivalling Russia’s giant Norilsk Nickel.

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