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Johannesburg - South African stocks ended lower on Tuesday, dragged down by mining shares as metal prices fell, but Steinhoff jumped after the furniture firm unveiled a $5.7bn deal to enter the apparel market.
Steinhoff topped the gainers' list on the benchmark Top-40 index, surging 4.5% to R58.49, its biggest daily percentage gain in more than a year.
The no-frills furniture firm will buy clothing retailer Pepkor in a deal that gives exposure to Africa's fast-growing apparel market and strengthens its business in eastern Europe.
"It's all about moving low margin products in high volumes. Steinhoff already does that with furniture and Pepkor does that with clothing, footwear and household goods. This deal will add a new dimension to Steinhoff," said Reuben Beelders, portfolio manager at Gryphon Asset Management.
Overall, the stock market fell for a second straight day as falling commodities hit mining shares.
The JSE Top-40 index was down 0.38% at 44 909 and the broader All-share index was off 0.43% at 50 507.
Bourse heavyweight Anglo American was down 1.27% at R229.19 and rival BHP Billiton lost 1.46% to R276.16.
Bidvest Group dropped 2.38% to R308.93 after the industrial conglomerate said the quarterly performance of its southern African business was below expectations.
Omnia plunged 11.23% to R191.50 after the fertilizer maker posted a 5% decline in first-half profit.
Trade was active, with 299 million shares changing hands, according to preliminary bourse data, almost double last year's daily average of 176 million shares.
