Wesfarmers
(ASX:WES) has responded to media reports about its discussions with the Malaysian Government regarding its proposal to acquire Lynas.
The conglomerate says it is disappointed at the mischaracterisation of its discussions with the Malaysian Government and rejects any inference that these were inappropriate or intended to interfere with Government process.
Wesfarmers announced a $1.5 billion, $2.25 a share approach for the rare earths miner two weeks ago.
Last Friday Malaysian Prime Mininster Dr Mahatir Mohamad, (said at a press conference) that Lynas may continue to operate if raw materials are brought to Malaysia after initial processing.
As a license condition, this would require Lynas to undertake the cracking and leaching process offshore.
Yesterday Lynas bowed to pressure and agreed to shift part of its processing plant to Western Australia for initial processing.
Wesfarmers says it has engaged in discussions with the Malaysian Government to better understand the licensing and regulatory regime affecting Lynas’ operations in Malaysia, and to present its credentials as a potential acquirer of Lynas.
Wesfarmers Managing Director Rob Scott says the company see's the Prime Minister’s statements as a positive step towards the resolution of longstanding regulatory and operating uncertainty for Lynas.
Shares in Wesfarmers
(ASX:WES) are trading 0.26 per cent lower at $34.34
