Yamana Gold holders would receive 0.6 Gold Fields share for each share outstanding under terms of the proposed takeover.
David Gray/AFP/Getty Images
stock surged on Tuesday after South Africa’s
agreed to buy the Canadian precious metals miner in an all-share offer valuing the company at $6.7 billion.
Under the terms of the deal,
(ticker: AUY) shareholders will receive 0.6 of a
Yamana jumped 17% in premarket trading on Tuesday. Gold Fields dropped more than 10%.
The combined group will create the world’s fourth biggest gold producer, headquartered in Johannesburg with operations across South Africa,Ghana, Australia, Canada and South America.
“Yamana’s high-quality asset base in the Americas and strong development and exploration pipeline will further diversify the geography of our portfolio, creating a top-4 global gold major, well positioned to deliver long-term value creation,” said Golds Fields chief executive Chris Griffin.
Gold Fields said Yamana’s board has unanimously approved the deal. It is expected to close in the second half of 2022.