Impala Platinum announced on Friday (September 12th) that it is in talks to buy Mvelaphanda Resources and one of its units, Northam Platinum.

The company, the world's second-largest producer of platinum, is looking to pull off the third-biggest mergers and acquisitions deal in South African history, if successful.

The three firms have a combined market capitalisation of 147.5 billion rand and Impala Platinum confirmed that it wants to "create a South African-controlled platinum champion".

The deal would be particularly beneficial for Mvelaphanda, as it is currently unable to finance the development of its Booysendal project, which has over 100 million ounces of platinum group metals (PGMs).

Leon Esterhuizen, from the Royal Bank of Canada in London, commented: "It's a great deal for both parties. It allows Impala some significant shallow, low-cost expansion capacity through Booysendal and it has the balance sheet to develop that."

Mvelaphanda recently bought the remaining 50 per cent of Booysendal in a black economic empowerment deal from Anglo Platinum, the world's biggest platinum producer.

The latest developments come after Mvelaphanda denied last week that it was in talks about a potential merger with Aquarius Platinum and Lonmin, the world's third biggest producer.


Source:
Implats in talks to buy Mvelaphanda, Northam (12/09/08)
http://africa.reuters.com/business/news/usnBAN251494.html