Gold Fields Slumps After $7 Billion Purchase of Canadian Miner
- Yamana takeover will make Gold Fields world’s No. 4 producer
- Gold Fields shares drop as much as 21%; Yamana advances
Source: Bloomberg
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Gold Fields Ltd. slumped after agreeing to buy Canada’s Yamana Gold Inc. for about $7 billion in an all-share deal that will make the South African miner the world’s No. 4 gold producer.
Yamana has mines in Canada, Argentina, Chile and Brazil, and Gold Fields said the acquisition fits with its strategy of expanding in “mining friendly” jurisdictions across the Americas. Chief Executive Officer Chris Griffith said it was a “monster deal” that provides a solution to the relatively short lifespan of Gold Fields’ existing operations.