Impala Platinum continues pursuit of RBPlat

Impala Platinum Holdings, one of the leading platinum group metals (PGM) producers in South Africa, is on the path to acquiring Rustenburg Platinum Mines (RBPlat). The company's CEO, Johan, recently provided an update on the progress of the acquisition in an interview with CNBC Africa. The journey towards acquiring RBPlat began last year when Impala announced its intentions to make a bid for 100% of the company. The regulatory work has now been completed, and the bid is formally open. Impala has already secured a 35% stake in RBPlat through discussions with institutional shareholders even before the bid officially opened. This early success has put Impala in a strong position as they move forward with the acquisition process. The strategic importance of acquiring RBPlat lies in the synergies between the two companies' operations. Located adjacent to each other, the merger of Impala and RBPlat would allow for the exploitation of these synergies, leading to increased efficiency and productivity. Despite initial plans to acquire 100% of RBPlat, Northern acquired a 35% stake from the Bafokeng nation, delaying Impala's bid. However, Impala remains confident that they will be able to gain a controlling stake in RBPlat. The response from institutional shareholders has been overwhelmingly positive, with many expressing support for the acquisition. Large institutional shareholders in South Africa have shown enthusiasm for the potential benefits of the merger, especially in unlocking synergies and ensuring the sustainability of the platinum-producing assets in the region. While there are still some shareholders remaining, including the PIC with a significant stake, Impala is optimistic about reaching a controlling position. Looking ahead, the outlook for PGM metals in 2022 remains positive. Despite some production issues earlier in 2021, which led to record prices, the market has stabilized, and prices are still relatively high compared to historical averages. The ongoing chip shortage and challenges in the auto sector have slightly impacted prices, but they are expected to remain supported in the first and second quarters of the new year. Overall, Impala anticipates a favorable environment for PGM metals in the coming years, with prices likely to remain strong for the foreseeable future.