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Mining giant Xstrata has tabled a bid to buy Anglo-African platinum miner Lonmin for Ј5bn ($10bn).
The Ј33-per-share cash offer is at a 42% premium to Lonmin's share price at the close of business on 5 August.
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Xstrata said the move marked "the next step" in its strategy to develop a significant platinum business and diversify its business.
The firm has been on the acquisition path since last year to capitalise on rises in global metal prices.
Mick Davis, Xstrata chief executive, said the firm was in pole position to turn around the South African mines owned by Lonmin, which have suffered from smelter failures and a loss of experienced staff.
Xstrata, which has already purchased 8% of Lonmin's shares, said it would fund the acquisition through a combination of cash and bank debt.
(BBC)
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