Mining's big soliloquy: to merge or not
Twelve years after Harmony's audacious bid for Gold Fields, the sector is up against it
It's been 12 years since the audacious bid by Harmony Gold to buy its larger rival Gold Fields collapsed. It proved an acrimonious affair, one which would eventually be contested in court. Now, with South Africa's gold mining industry seeming to be on its last legs, the craftsmen of that original deal may have been prescient in their rationale for the merger, which would have created the world's largest gold miner. Bernard Swanepoel, who was at the helm of Harmony at the time of the bid and waged a bitter battle with contemporary Ian Cockerill, said "the premise that we [Harmony] would have done better with the mines is untested". However, he added that Gold Fields'spinning off of its South African mines to Sibanye "at least spoke to the proposition we made that the mines be run differently". Sibanye had done that, running them at lower cost, Swanepoel said. From Harmony's first move on the much larger establishment-darling Gold Fields, to its decision to quit the deal, it took seve...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.