Gold Fields Rules Out Raising Yamana Offer After Rival Bid

image

(Bloomberg) — Gold Fields Ltd. said it won’t raise its offer for Yamana Gold Inc. after two Canadian rivals teamed up with an unsolicited $4.8 billion bid to break up an earlier merger agreement with the South African miner.

Its offer for Yamana is “strategically and financially superior” to the deal put together by Pan American Silver Corp., and Agnico Eagle Mines Ltd., Johannesburg-based Gold Fields said in a statement Monday. That’s at odds with Yamana, which said the cash-and-stock proposal announced on Friday is “superior” to the Gold Fields agreement reached back in May.

The battle to acquire Toronto-based Yamana in the biggest gold deal of the year underscores the pressure to boost output as costs spiral and new deposits becomes more difficult to find. Walking away from the deal could hurt Gold Fields’ long-term growth outlook, but the company has already faced investor criticism for the 34% premium it offered when its original $7.25 billion bid was announced.

“We do not expect Gold Fields management to get pulled into an all-out bidding war given their conservative nature and resistance from shareholders against its original Yamana offer,” Arnold Van Graan, an analyst at Nedbank Group Ltd., said in a note to clients.

Gold Fields was little changed in Johannesburg trading, after surging 11% on Friday.

Gold Fields reiterated that Yamana’s assets would create significant near-term and long-term value for the shareholders of both companies. The deal would help Gold Fields’ expand in the Americas, as producers in South Africa struggle with the geological challenges of operating some of the world’s deepest mines.

“The board has unanimously determined that it will not offer to change the terms of the transaction,” Gold Fields said in the statement. “The board has taken into account its commitment to capital discipline and considered the fairness of the transaction to both Gold Fields and Yamana shareholders over the long term.”

Should their agreement be terminated, Yamana would have to pay a $300 million break fee to Gold Fields.

Yamana shareholders are scheduled to vote on the deal on Nov. 21, while Gold Fields investors meet the next day.

Under the rival proposal, Pan American would acquire Yamana, while Agnico Eagle would buy Yamana’s Canadian assets. Pan American is offering shares to Yamana investors, while Agnico Eagle is offering shares and contributing $1 billion of cash. The deal would make Pan American a major precious metals producer in Latin America, while Agnico Eagle will gain operational control of Canada’s Malartic mine.

©2022 Bloomberg L.P.

 
Trending Ideas

Featured Stocks On The Move

Daily Rundown
  • Space, AI, Spacecraft, Medical

    Intuitive Machines, Inc. (LUNR) Intuitive Machines, Inc. is a leading provider of space exploration and lunar landing solutions. The company develops advanced spacecraft and technologies that support NASA’s missions and... Read More

  • Semiconductors, Banking, Retail, Tools

    Magnachip Semiconductor Corporation (MX) Magnachip Semiconductor Corporation designs and manufactures analog and mixed-signal semiconductor products. Serving automotive, industrial, and consumer markets, the company delivers advanced display and power solutions. Chart... Read More

  • Sportswear, Blockchain, Medical, E-commerce

    On Holding AG (ONON) On Holding AG is a premium sportswear company specializing in high-performance running shoes and apparel. Known for its innovative cushioning technology, the company caters to athletes... Read More

  • Chemicals, Venture, Energy, Insurance

    Flexible Solutions International Inc. (FSI) Flexible Solutions International Inc. develops and manufactures biodegradable and environmentally safe chemicals. The company specializes in water and energy conservation products, serving industries like agriculture... Read More

  • Data, Blockchain, Education, Semiconductors

    LiveRamp Holdings, Inc. (RAMP) LiveRamp Holdings, Inc. specializes in data connectivity and analytics, helping businesses unify customer data for personalized marketing strategies. Its platform enables secure data sharing and drives... Read More

  • Services, Renewable, Batteries, Midstream

    Ranger Energy Services, Inc. (RNGR) Ranger Energy Services, Inc. provides well service solutions to the oil and gas industry. The company specializes in high-spec rigs, well maintenance, and completion services,... Read More

  • Analytics, Manufacturing, Appliances, Energy

    ExlService Holdings, Inc. (EXLS) ExlService Holdings, Inc. is a leading provider of data analytics and digital operations solutions. The company helps businesses enhance decision-making, streamline operations, and achieve transformative growth... Read More

  • Wellness, Energy, Construction, Exploration

    LifeVantage Corporation (LFVN) LifeVantage Corporation is a wellness company focusing on nutrigenomics to improve health and longevity. It offers science-backed dietary supplements and skincare products aimed at optimizing health and... Read More



Top 3 Stocks in Leading Sectors
  • 3 Retail Stocks To Buy Now

    Wayfair Inc. (W) Wayfair Inc. is a leading e-commerce platform specializing in home goods and furniture. The company offers a wide selection of products, seamless online shopping experiences, and innovative... Read More

  • 3 Semiconductors Stocks To Buy Now

    GSI Technology, Inc. (GSIT) GSI Technology, Inc. develops high-performance memory and storage solutions for networking, telecommunications, and defense applications. Known for its cutting-edge SRAM and AI processors, the company supports... Read More

  • 3 Technology Stocks To Buy Now

    BTC Digital Ltd. (BTCT) BTC Digital Ltd. is engaged in cryptocurrency mining and blockchain technology development. The company leverages advanced infrastructure to produce digital assets and support the growth of... Read More

  • 3 Distribution Stocks To Buy Now

    DNOW Inc. (DNOW) DNOW Inc. is a leading distributor of energy and industrial products, offering supply chain solutions and services. Serving oil, gas, and industrial sectors, the company ensures operational... Read More

  • 3 Energy Stocks To Buy Now

    EQT Corporation (EQT) EQT Corporation is a leading natural gas producer, operating in the Appalachian Basin. The company leverages advanced technologies to optimize energy production and deliver sustainable solutions to... Read More

  • 3 Consumer Stocks To Buy Now

    Playa Hotels & Resorts N.V. (PLYA) Playa Hotels & Resorts N.V. owns and operates all-inclusive beachfront resorts in prime locations across the Caribbean and Mexico. The company offers luxurious accommodations,... Read More

  • 3 Aviation Stocks To Buy Now

    Kratos Defense & Security Solutions, Inc. (KTOS) Kratos Defense & Security Solutions, Inc. specializes in developing and deploying advanced defense technologies, including unmanned systems, satellite communications, and cybersecurity solutions. The... Read More

  • 3 Apparel Stocks To Buy Now

    V.F. Corporation (VFC) V.F. Corporation is a global leader in branded lifestyle apparel, footwear, and accessories. With a diverse portfolio of iconic brands like Vans, The North Face, and Timberland,... Read More