On Tuesday, Sibanye Gold announced a R4bn offer for Aquarius Platinum, this deal will catapult Sibanye into the ranks of the five biggest platinum group metals (PGM) miners in the world.

The company has offered 19.5 %0.195 (R2.66) per Aquarius share, a 56% and 60.3% premium to Monday closing prices in Johannesburg and London respectively. The offer values Aquarius at $294 million.

Following the announcement at 8:08 GMT, Aquarius’ shares in Johannesburg soared 41.18% to R2.40, slightly below the offer price. The stock was up more than 43% in London. The offer has the backing of Aquarius’ board but still requires shareholder approval.

Sibanye would bed down its two latest acquisitions in the short term but as the commodities cycle appeared close to the bottom there were still plenty of opportunities for more, CEO Neal Froneman said on Tuesday.

“We will look at opportunities as they arise and as long as they are value-enhancing and accretive at earnings per share level, we will move on them.

“If there is something in the gold or the platinum sector we will do it, and we have said previously we want to do a coal deal to protect our energy exposure.

“There are other attractive commodities as well.”

Shares in Sibanye advanced 5.5% to 18.92 rand following the announcement.

This deal follows a month after an agreement to buy Anglo Platinum’s Rustenburg mines.