June 28, 2018 / 6:57 AM / 23 days ago

Sibanye's Lonmin takeover cleared by UK antitrust body

JOHANNESBURG/LONDON (Reuters) - Britain’s Competition and Markets Authority (CMA) unconditionally cleared Sibanye-Stillwater’s (SGLJ.J) proposed takeover of Lonmin (LMI.L) (LONJ.J) on Thursday saying the mining merger would not require a second phase investigation.

The South African precious metals miner made an all-share offer for London-listed Lonmin in December in a 285 million pound ($386 million) deal aimed at creating the world’s No.2 platinum producer.

“We look forward to the combination of the businesses creating a leading mine-to-market player with enhanced scale and resources, able to compete more effectively,” the CEOs of Sibanye and Lonmin said in a joint statement.

The deal, which is on track to close in the second half of the year, remains subject to approval from South African competition authorities, the shareholders of both companies and courts in England and Wales, Sibanye said in a statement.

Lonmin also must maintain its net cash position and achieve certain production targets, Sibanye CEO Neal Froneman said in May, as Lonmin has previously required cash injections.

Reporting by Tanisha Heiberg and Zandi Shabalala in London; editing by Jason Neely

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