Gold Fields buying Yamana Gold in US$6.7B deal – by Felix Njini (Bloomberg News – May 31, 2022)

Gold Fields Ltd. agreed to buy Canada’s Yamana Gold Inc. for about US$7 billion in an all-share deal that will make the South African miner the world’s No. 4 gold producer.

Yamana has mines in Canada, Argentina, Chile and Brazil, and Gold Fields said the acquisition fits with its strategy of expanding in “mining friendly” jurisdictions across the Americas.

Chief Executive Officer Chris Griffith said it was a “monster deal” that provides a solution to the relatively short lifespan of Gold Fields’ existing operations, though it would take time to explain the potential benefits to shareholders.

“It’s a good deal,” said Rene Hochreiter, an analyst at Noah Capital Markets in Johannesburg. “It adds a lot of value to Gold Fields and I wouldn’t look at what the share price does today.”

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