Northam Platinum has withdrawn its offer to acquire Royal Bafokeng Platinum (RBPlat), citing low platinum group metals (PGM) prices, as it concludes a year-long takeover battle with Impala Platinum.
According to the miner, the rhodium closing price has been below $9000/oz for 12 trading days, while the basket price for four PGMs has been below R33 000 ($1 830.91) an ounce for ten trading days.
"Northam Holdings hereby notifies RBPlat shareholders that the offer has been terminated with immediate effect," the company stated.
Northam's decision to abandon its pursuit of RBPlat clears the way for Impala, the world's second-largest producer of PGMs, to strengthen its grip on a miner with high-grade assets that made it an appealing takeover target.
It had outbid Impala's initial offer to acquire RBPlat but said that PGM prices had fallen to levels that constituted a "material adverse change", rendering its offer null and void.
During the takeover battle, Impala and Northam amassed 40.71% and 34.52% stakes in RBPlat, respectively.
Northam did not say whether it would keep its stake or sell it to Impala, but Northam chief executive Paul Dunne told analysts last month that his company might consider running RBPlat jointly with Impala.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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