Yamana Gold stock soars after Gold Fields buyout deal valuing the miner at $6.7 billion

The U.S.-listed shares of Yamana Gold Inc. AUY, +8.55% YRI, +4.59% soared 15.3% in premarket trading Tuesday, after the Canada-based gold and silver miner announced an agreement to be acquired by Gold Fields Ltd. GFI, -20.49% in a stock deal that values Yamana at about $6.7 billion. Under terms of the deal, all Yamana shares will be exchanged for 0.6 Gold Field shares, which based on Friday’s closing prices would value Yamana’s stock at $7.32 each, a 41.6% premium. Gold Fields’ stock slumped 12.6% in premarket trading. The companies are targeting synergies of about $40 million per year from the deal, which is expected to close in the second half of 2022. “Yamana’s high-quality asset base in the Americas and strong development and exploration pipeline will further diversify the geography of our portfolio, creating a top-4 global gold major, well positioned to deliver long-term value creation,” said Gold Fields Chief Executive Chris Griffith. Yamana’s stock has rallied 22.5% year to date through Friday and Gold Fields shares have climbed 11.0%, while gold futures GC00, -0.59% have gained 1.3% and the S&P 500 SPX, -0.61% has shed 12.8%.

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