Boston, MA 03/14/2014 (wallstreetpr) – Sibanye Gold Ltd (ADR) (NYSE:SBGL) is a South Africa gold producer. The company’s primary activities include extraction and processing of gold and its focus is on surface and underground gold mining projects. The company was spun out of Gold Fields as the gold major sought to dislodge itself from the labor issues in the South Africa mining industry.
Shares of Sibanye Gold Ltd (ADR) (NYSE:SBGL) were last seen at $9.76, up 5.4 percent. The shares were traded in heavy volume than in a normal session and intraday prices came in the range of $9.22 to $9.91. The company has had its New York Stock Exchange listed shares trading between $2.61 and $9.91 over the last 12 months.
Merger approved
Sibanye Gold Ltd (ADR) (NYSE:SBGL) and Newshelf 1114 had placed forward a request for merger approval. And in the latest development, the Competition Tribunal has approved the merger, but has issued certain conditions. The key highlight of the conditions is that the companies will not be able to undertake merger-related retrenchments. At least until after two years elapse.
Although merger-related employee retrenchment has been halted in the case of Sibanye Gold Ltd (ADR) (NYSE:SBGL) and Newshelf 1114 deal. The companies can still enter voluntary retirement agreement with their employees if workforce adjustment becomes necessary before the two years pass.
While South Africa authorities agree that businesses can adjust according to the changing competitiveness in the market, it takes proactive efforts to regulate what happens to workers in the case of commercial transactions like merger.
Sibanye assures on production
As Sibanye Gold Ltd (ADR) (NYSE:SBGL) enters a merger deal with Newshelf 1114, the company had received request from South Africa electricity utility to cut its power consumption. The utility requested at least 10 percent reduction in power usage. While this has been a concern for investors, the company has said that the requested reduction in power consumption will not and has not caused it production losses.
