South Africa has a new gold mining top dog after Gold Fields secured the $6.7bn all-share takeover of Canadian miner Yamana.
Almost a decade after it hived off the bulk of its South African assets into the creation of Sibanye, venerable SA mining group Gold Fields Limited has delivered a statement of great intent through the acquisition of a Canadian peer for more than R100bn. The acquisition, a stock-only deal, will enlarging the Gold Fields issued equity by 39%. It came as an unpleasant shock to Gold Fields’ current owners who knocked 11% off the share price, dropping the price to a three month low. The South African company, now led by former AngloPlatinum CEO Chris Griffith, was founded during the Witwatersrand Gold Rush of 1887, and was the bullion-vehicle of Kimberley diamond magnate Cecil John Rhodes. Its only remaining SA asset is South Deep, the long-life, deep-level and highly mechanised gold mine once owned by the late Brett Kebble. It is one of the world’s biggest gold producers and is based in Gauteng to the south west of Soweto between Carletonville and Vereeniging. Here’s the report from our partners at the FT. – Alec Hogg
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