09 Dec Sibanye Gold to purchase Stillwater Mining Company for $2.2 billion
South African bullion mining firm Sibanye Gold has announced it will formally purchase US-based Stillwater Mining Company, in a deal worth US$2.2 billion.
A company statement revealed that ‘a definitive agreement to acquire all of the outstanding common stock of Stillwater Mining Company (NYSE: SMC)’, at a price of $18 per share in cash.
Sibanye, the largest individual producer of gold in South Africa and is one of the 10 largest global producers of the precious metal, is making the acquisition as part of an ongoing expansion programme.
However, this deal is Sibanye’s first purchase outside of South Africa and reflects a move towards the production of platinum group metals (PGMs), as Stillwater Mining extracts palladium, platinum and other PGMs from a geological formation in Montana.
Neal Froneman, Sibanye CEO said: “We believe the transaction represents a unique opportunity for Sibanye to acquire high-quality, low cost PGM assets which offer near-term organic growth.”