JOHANNESBURG (Reuters) - The Committee on Foreign Investment in the United States will extend its scrutiny of a $2.2 billion takeover by South Africa’s Sibanye Gold (SGLJ.J) of the only U.S. miner of platinum and palladium, Stillwater Mining SWC.N, Sibanye said on Friday.
The committee, which examines deals for potential U.S. national security concerns, extended the deadline for its review from February 28 to no later than April 14, 2017 which the company said was part of the normal process.
“Its fairly complicated, it’s a South African company with a large Chinese shareholding so they have just asked for an extension so that they can do further investigations,” said Sibanye spokesman James Wellsted.
Gold One South Africa, majority-owned by a Chinese consortium, holds a 19.96 percent share in Sibanye.
The transaction, which will strengthen Chief Executive Neal Froneman’s determination to diversify out of gold mining and South Africa, will remain on schedule for closure during the second calendar quarter of 2017, the company said.
The company did not detail any regulatory hurdles, saying only the deal - which is backed by Stillwater’s board - was conditional on the required authorizations.
Sibanye said last month that it had secured a loan of $2.65 billion to support the acquisition, after it closed the syndication of the bridging loan underwritten by Citi and HSBC, to acquire all of the outstanding common stock of Stillwater Mining for $18.00 per share in cash.
The deal will make Sibanye the world’s third largest palladium producer and fourth largest platinum group metals miner.
By 1050 GMT, shares in Sibanye had fallen 2.66 percent to 25.26 rand.
Reporting by Tanisha Heiberg, editing by David Evans