The transaction will create a top-4 global gold major that will have a diversified portfolio of 14 mines and other long-life assets across South Africa, Ghana, Canada, Australia, and South America with tangible near and long-term growth opportunities
South African gold miner Gold Fields has agreed to acquire Canadian gold producer Yamana Gold in an all-stock deal worth $6.7bn.
The deal is expected to create a top-4 global gold major that will have a diversified portfolio of long-life assets with tangible near and long-term growth opportunities.
The combined firm will have 14 mines that are located in South Africa, Ghana, Canada, Australia, and South America. It will be headquartered in Johannesburg, South Africa.
Currently, Gold Fields has nine operating mines in Australia, Ghana, Chile, South Africa, and Peru. The company is also engaged in the Asanko joint venture in Ghana.
Yamana Gold has gold and silver assets in the Americas, including Canada, Chile, Brazil, and Argentina. It has five producing mines that include Canadian Malartic, Cerro Moro, El Peñón, Jacobina, and Minera Florida.
Gold Fields CEO Chris Griffith said: “Today’s announcement is the result of a robust and extensive process carried out by the Gold Fields’ Board and management team to identify the optimum solution to support our revised strategy.
“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.”
As per the terms of the deal, Gold Fields will exchange 0.6 of its shares for each of Yamana Gold’s shares.
After closing of the deal, Gold Fields’ shareholders will hold a stake of around 61% in the combined group, while Yamana Gold’s shareholders will own the remaining 39% stake.
Yamana Gold executive chairman Peter Marrone said: “This is an outstanding opportunity for our shareholders, employees and the local communities in which we operate throughout the Americas.
“The Transaction delivers an immediate and compelling premium for Yamana Shareholders, reflecting the inherent fair value of our assets, while also offering an opportunity to benefit from the creation of a new global gold producer with an attractive value proposition.”
The deal, which is subject to preceding conditions, is anticipated to close in the latter half of 2022.