LONDON, Sept 3 (Reuters) - South Africa's Public InvestmentCorporation (PIC) said it will support a takeover of platinumproducer Lonminby precious metals producerSibanye-Stillwater .
State-owned PIC is the largest shareholder in strugglingLonmin, holding 29.2 percent and is Sibanye's second largestshareholder, with an 11.2 percent stake.Lonmin has been the biggest casualty in South Africa'splatinum mining industry which is under pressure from risingcosts and muted prices.The deal would make Sibanye the world's No. 2 platinumproducer having purchased U.S.-based palladium miner Stillwater,all of Aquarius Platinum and the Rustenburg operations of AngloAmerican Platinum .Sibanye said in December it would buy Lonmin in an all-sharedeal that is scheduled to close in the second half of the year,although it still requires approval from both companies'shareholders and South African regulators. "The Public Investment Corporation has expressed support forthe deal right from the outset," the PIC said in a statement."We believe that it will assist in driving consolidation in anailing sector."In June, Britain's Competition and Markets Authority (CMA)unconditionally cleared the transaction, saying it would notrequire a second phase investigation. "We would be very pleased if the PIC is supportive, and hopethat all shareholders will recognise the compelling rationalefor the proposed acquisition," Sibanye spokesman James Wellstedsaid, adding that the company had not yet sought support fromits shareholders.Lonmin was not immediately available for comment.
(Reporting by Zandi Shabalala in London and Tanisha Heiberg inJohannesburg; Editing by Kirsten Donovan)