Multi-listed Gold Fields is set to acquire Canadian-based Yamana Gold in a deal worth more than $6 billion.
Yamana is a leading precious metals producer with significant gold and silver production, development and exploration stage properties and land positions throughout the Americas, including Canada, Brazil, Chile and Argentina.
The all-share offer by Gold Fields at an exchange ratio of 0.6 Gold Fields Consideration Shares for each Yamana Share implies a valuation for Yamana of $6.7 billion. Yamana’s board of directors has unanimously approved the transaction and is recommending to its that they vote in favour of the transaction.
The transaction creates a diversified top-four gold global major with a diversified portfolio of high quality, long-life assets with tangible near and long-term growth opportunities.
The combined group will be headquartered in Johannesburg with operations across Canada, Australia, South America, Ghana and South Africa.
According to a company statement, the Gold Fields board believes that the transaction significantly strengthens the ability of the combined group to deliver on its three strategic pillars: maximisation of asset potential; advancement of ESG commitment; and growth of the value and quality of the portfolio of its assets. The combined group has the potential to create significant long-term value for shareholders through greater scale, an industry-leading portfolio, enhanced production profile with significant growth potential, operational and geological synergies, and a strengthened financial profile for future growth and shareholder returns.
Chris Griffith, CEO of Gold Fields commented, “Today we are announcing the acquisition by Gold Fields of Yamana, two companies with complementary portfolios, cultures and strategic priorities. The result is a combination with much greater capacity and potential value than the sum of its parts. Each company brings with it a unique set of skills and geological knowledge, enabling the combined group to enhance its assets over the long-term more efficiently than they could as separate companies.
“The announcement is the result of a robust and extensive process carried out by Gold Fields’ board and management team to identify the optimum solution to support our revised strategy. Combined, Gold Fields will boast an industry-leading portfolio of high-quality, long-life flagship assets that span some the world’s most established gold mining jurisdictions. Like Gold Fields, Yamana is focused on operational delivery, disciplined capital allocation, portfolio management, maximising shareholder returns, and upholding leading sustainability, safety and ESG performance. These shared priorities are foundational to this transaction.”