By Carlo Martuscelli
Sibanye Gold Ltd. (SGL.JO) said Tuesday that it has received approval from the South African Reserve Bank to go ahead with the proposed acquisition of platinum producer Lonmin PLC.
The miner said that the transaction is scheduled to close in the second half of the year. It still has to be approved by shareholders of both companies as well as the competition authorities in the U.K. and South Africa.
There's been speculation among analysts and press that the deal could fall through if Lonmin isn't able to stem its outflow of cash.
"Lonmin is working closely with Sibanye-Stillwater towards completing the transaction during the second half of the year as planned," said Lonmin Chief Executive Ben Magara.
"Lonmin remains committed to its strategy of focusing on operational performance, controlling costs and preserving cash," he said.
Write to Carlo Martuscelli at [email protected]