Gold mining megamerger comes as prices sag
Gold Fields of South Africa agreed to buy Canada's Yamana Gold for US$6.7 billion in stock.
Why it matters: This creates the world's fourth-largest gold miner, and comes as gold prices (and gold miner stocks) have faded after a brief surge when Russia first attacked Ukraine.
- The deal represents a 33.8% premium over the 10-day volume-weighted average price of Yamana shares, with Yamana shareholders to own a 39% stake in the combined company.
- A final close is expected by year-end, pending regulatory approvals.
More, per the WSJ: "Gold Fields has been working to diversify its operations outside of South Africa, where it faces declining and increasingly hard-to-reach gold reserves and other issues."