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South African mining Gold Fields has agreed to acquire Yamana Gold in an all-share deal valuing its Canadian peer at $6.7 billion, the latest consolidation in the fragmented industry.
Source: YamanaGold
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Under the terms of the deal, all outstanding Yamana shares will be exchanged at a ratio of 0.6 of an ordinary share in Gold Fields. The transaction values Yamana at $6.7 billion and represents a premium of 33.8%.
Upon finalization of the arrangement, it is expected Gold Fields shareholders and Yamana shareholders will account for nearly 61% and 39% of the combined entity, accordingly.
Gold Fields and Yamana now have 14 mines providing regional relevance across premier, rules-based mining jurisdictions, including South America, North America, Australia, and Africa.
The deal will create the third-largest gold company in terms of gold production in 2024 and the fourth-largest by market capitalization.
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