Impala Platinum (Implats) said on Wednesday it would not proceed with a R22-billion deal to buy Mvelaphanda Resources (Mvela) and its unit, Northam Platinum, citing the global economic climate.
The companies, in a joint statement on Wednesday, said Implats would not proceed with the deal.
Implats, the world’s number-two platinum producer, had said it wanted to ”create a South African-controlled platinum champion”, and the proposed deal would have given it access to Booysendal, Mvela’s prime platinum deposit.
”Due to the current global economic climate as well as the ongoing volatility in commodity and equity prices, the parties have not been able to agree on exchange ratios for the implementation of the proposed transaction,” the companies said.
”Negotiations have therefore been terminated.” — Reuters