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(Bloomberg) — Gold Fields Ltd. will buy its Australian joint venture partner Gold Road Resources Ltd. in a deal valuing it at A$3.7 billion ($2.4 billion), a sweetened offer following weeks of negotiations over their key project in Western Australia.
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The Johannesburg-listed miner will use cash to acquire all outstanding shares at A$3.40 each — 12% higher than a previously rejected proposal put forward by Gold Fields in March, Perth-based Gold Road said in a statement Monday. That implies a total enterprise value of A$2.4 billion and represents a premium of 43% to the Australian company’s closing price on March 21 — before the larger miner initially announced its acquisition intention, it said.
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The new deal — which was unanimously recommended by Gold Road board members — will consolidate Gold Fields’ 50% ownership of the joint-venture Gruyere mine it operates in Western Australia. The project — which produced 287,000 ounces of gold in 2024 — accounted for about 11% of Gold Fields’ free cash flow from extractive operations last year.
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Bullion’s record-breaking rally over the past three years — with prices topping $3,500 an ounce last month — has renewed interest in deal-making across the sector after years of overspending and operational setbacks curbed appetite for assets. The world’s major producers still face the need to replace aging mines.
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With prices for the precious metal up around 40% over the last 12 months, M&A is firmly back on the table as miners seek more supply. There’s been a flurry of deals in recent months, including CMOC Group’s purchase of Canada’s Lumina Gold Corp. in April, while Gold Fields last year agreed to buy Osisko Mining Inc.
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