Sibanye-Stillwater’s move to cancel its $1 billion (R15.3 billion) acquisition of nickel and copper mines in Brazil was challenged by the seller, which said there was no legal basis to terminate the deal.
The purchase was part of Sibanye’s drive to join the rush into metals that are key to powering electric vehicles and the wider green revolution. Sibanye said it terminated the deal after a material “geotechnical event” at the Santa Rita nickel mine.
“Appian is currently assessing all of its legal options and will take all necessary action to enforce its legal rights,” it said. The collapse of the deal is a setback for Sibanye’s dealmaking Chief Executive Officer Neal Froneman, who expanded the company’s platinum-group metals business in South Africa by buying cheaper mines when metal prices were lower. Acquiring battery metals assets may prove more difficult after a sharp rally in prices.
Earlier on Monday, Wellsted told Fin24 the agreements were signed, but the transaction had not yet closed because all conditions precedent hadn't been fulfilled.