M&A IN THE AIR: Northam says unnamed PGM rival made unsolicited approach, spoor points to Valterra
Could some kind of asset swap be on the cards, or a potential joint venture? That’s just speculation, but Valterra seems to be on the hunt suddenly, and Northam seems to covet some of its assets. Are the two circling each other in the bushveld?
On Tuesday, South Africa's largest platinum group metals (PGM) producer Northam Platinum announced it had received an unsolicited approach from an unnamed PGM rival for an "asset-level" or "corporate" transaction. The statement marked a shift in South Africa's main PGM producers' focus on organic growth. Northam's announcement narrowed the potential list of suitors to three: Valterra Platinum, Impala Platinum, and Sibanye-Stillwater.
However, spokespeople for Implats and Sibanye both denied being the party mentioned. Valterra, which was formerly Anglo's PGM unit, saw its share price fall by more than 5% in response to the news. Northam's share price, on the other hand, increased by 6% by mid-afternoon trade. Northam Platinum's CEO, Paul Dunne, has expressed interest in South African asset Amandelbult, which is close to Valterra's Der Brochen mine.
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