Sibanye and Lonmin said in a joint statement they remained fully committed to the deal, which is expected to close by the end of the year.
Lonmin Mining News
The transaction would create the world’s No.2 platinum producer as Lonmin is the world’s third-largest while Sibanye-Stillwater is the fourth.
Sibanye said in a statement that it would fund the tender offer from existing cash resources.
Lonmin has been the biggest casualty in South Africa's platinum mining industry.
The deal requires more than 50 percent approval in a vote by Sibanye investors, in addition to Lonmin’s shareholders’ approval.
Price for scarce precious metal rhodium is up 270% in two years.
By mid-morning, Lonmin shares had lost 5.6% of their value in London, while Sibanye’s were down 4.9% in Johannesburg, even though the companies announced they had received the approval of the South African Reserve Bank (SARB).
The proposed deal with Sibanye is conditional upon Lonmin retaining a positive cash balance by the time it is to close in the second half of the year.
Sibanye said it would cut a third of Lonmin's employees and deliver savings of about $112 million a year by 2021.
The miner warned further reductions could be in store at those operations, which employ 31,000 people.
Consolidation in South African's platinum mining sector continued on Friday with Lonmin's decision to buy Amplats' stake in the Pandora platinum mine.
The move will allow the platinum miner to restructure its debt and, it hopes, weather an ongoing decline of platinum prices.
The company has priced its $407 million share sale at a discount of 94% as it fights for survival after a near-collapse in the commodity's price.
The radical decision would make of the platinum producer the biggest casualty of the ongoing commodity rout that is hurting miners worldwide.
The world’s third-largest platinum producer is also planning layoffs, cutting capex and lowering unit costs.
Given that ousted minister Ramatlhodi is considered the main person that helped end a five-month strike in the country’s platinum sector last year, Zuma's decision is being questioned.
Supply for the year, however, is expected to increase by 9% to 7.91 million ounces, owing to the recovery in the country’s output following strikes in 2014, as well as increased platinum recycling.
They claim the official report on the police killing of 34 striking miners in 2012 is a "gross defamation" of those who died.
The commission into the deaths at Lonmin's Marikana platinum mine in August 2012 concluded the plan to quell the massive protest was “defective,” and shouldn't have been executed as such.
The move may create a group of sellers that want to dispose of their holding, or it could open the door to a buyer, according to analysts.
President Jacob Zuma received on Tuesday the official report into the police killing of 34 South African miners in 2012, as rights groups demanded that its findings be quickly made public.
The operations that may be added to the list of assets for sale are Dawson and Foxleigh, in Queensland.
Anglo's chief warned the company plans to take severe measures over the next two years.
A big corporate break-up à la BHP Billiton is definitively not in his books, he told FT.com.
Output from the rest of Anglo's diversified mining assets rose, but it wasn't enough to offset underperformance at its platinum mines.