Pan American Silver to Buy Smaller Rival MAG for $2.1 Billion

Pan American Silver Corp. agreed to buy smaller producer MAG Silver Corp. in a transaction valued at about $2.1 billion, giving the bigger rival access to a major mine in Mexico.

MAG shareholders will receive $500 million in cash and 0.755 ordinary shares of Pan American for each stock they own, Pan American said Monday. That values MAG shares at $20.54 based on May 9 closing prices, a 21% premium.