In March 2021, an article in an online mining industry news service reported comments by Neal Froneman, Chief Executive Officer (CEO) of Sibanye-Stillwater Limited, the world's largest platinum producer and the largest producer of gold in South Africa. Froneman suggested that Sibanye-Stillwater should combine with peers Gold Fields Limited and AngloGold Ashanti Limited. The article quoted Froneman as saying "I think there are three high quality SA companies that should be put together", aligning with a view that consolidation is necessary if South African based companies are to compete at a global level

In his comments, Froneman pointed out that the result of his suggested transaction would be a company larger than Newmont, currently the largest gold mining company in the world with annual production of 5.9 million ounces of gold. Another Sibanye-Stillwaters spokesperson commented on the company's interest in increasing annual gold production by at least 1.0 million ounces through a transaction

A spokesperson for AngloGold Ashanti was quoted as saying: "We have outlined our growth plan to unlock value from our global portfolio of gold assets. We are focused on delivering on this strategy, which we believe will deliver the most value for our shareholders". A spokesperson for Gold Fields said the company would not comment on market speculation. The contents of this table (see attachment) are from various sources in the period mid 2020 to early 2021. Based on this information in the attachment:

(a)Would this transaction be a merger or an acquisition? explain your answer

(b)Identify two strategic benefits that Sibanye-Stillwater would realize if this transaction happened that are not mentioned above. For each, indicate in the specific information that caused you to select it

Company Market cap Annual gold Operations All-in sustaining production cost (AISC) - gold Sibanye-Stillwater USD 14.13 B 1 Mn oz Gold - South Africa USD 1,500 (3 Mn oz (PGM - South Africa, PGM) North America) AngloGold Ashanti USD 9.75 B 3 Mn oz Gold - DRC, Congo, USD 1,000 Ghana, Guinea, Tanzania, Australia, South America Gold Fields USD 8.7 B 2.2 Mn oz Gold - South Africa, USD 1,000 Ghana, Australia, Peru