Implats in Talks to Become a Platinum Metals Giant

IMPALA Platinum Holdings Ltd. is in talks to buy its smaller rival Royal Bafokeng Platinum Ltd., in a deal that Implats said may create South Africa’s largest platinum-group metals producer.

Flush with cash after higher rhodium and palladium prices, Implats is seeking to expand by buying lower cost and mechanized assets as some of its deep-level operations near their end. The company said Wednesday a deal for all of Royal Bafokeng’s shares may involve cash and equity and the outstanding details could be concluded in the coming weeks.

Implats has long sought to combine with Royal Bafokeng, and a deal would help the producer exploit synergies from deposits adjacent to its sprawling Rustenburg mining complex. It should also extend the life of Rustenburg mines and end royalties that Implats was paying to Royal Bafokeng to mine part of the adjacent reserves, Kagiso Asset Management Ltd. said.

Implats shares fell 1.9%