Northern Star Revives Gold’s Stalled M&A Spree With Saracen Deal

  • Pact to create producer with market valuation of A$16 billion
  • Combination of assets in Australia seen delivering savings

Photographer: Carla Gottgens/Bloomberg

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Northern Star Resources Ltd. agreed to buy smaller Australian rival Saracen Mineral Holdings Ltd. to boost gold output amid surging prices and create a top 10 global producer with a market valuation of about A$16 billion ($11.5 billion).

Adding Saracen’s assets in Australia will put the company on track to produce 2 million ounces a year from fiscal 2027 and deliver as much as A$2 billion in operational savings, Perth-based Northern Star, the country’s second-largest gold miner, said Tuesday in a statement.