Impala Platinum acquires majority control of Royal Bafokeng Platinum

On 31 May 2023, Impala Platinum Holdings Ltd (Implats) acquired a 9.26% shareholding in Royal Bafokeng Platinum (RBPlat) from the Public Investment Corporation (PIC), raising its total shareholding to 55.46% and securing its majority control over RBPlat. Compass Lexecon supported Implats throughout the merger review process with the South African Competition Commission and the Competition Tribunal.

Compass Lexecon submitted economic analyses of the merging parties’ businesses, the South African platinum group metals industry and the global precious metals markets to the South African Competition Commission. Based on these, we concluded on the lack of horizontal or vertical effects of the merger on platinum group metals prices as well as the significant merger-specific efficiencies expected from the transaction. On 29 April 2022, the Competition Commission recommended that the transaction be approved by the Competition Tribunal. Compass Lexecon also provided support to Implats during the proceedings at the Competition Tribunal, responding in particular to third party complaints regarding potential impacts of the merger on smaller mining operators in South Africa. The Competition Tribunal approved the merger on 17 November 2022.

The Compass Lexecon team was led by Jorge Padilla, Neil Dryden and Segye Shin. Implats was advised by Anthony Norton, Anton Roets and Nina Christina Greyling of Nortons Inc.