South Africa's Gold Fields approached Northern Star Resources about a potential takeover, but Australia's biggest gold miner rebuffed the overtures, Bloomberg News reported Saturday. The approach lands as Northern Star faces pressure from activist investor Elliott Investment Management to consider a sale or asset divestments.
South Africa's Gold Fields Ltd (JO:GFIJ) has approached Northern Star Resources (ASX:NST), Australia's biggest gold miner, about a potential acquisition, but Northern Star rebuffed the overtures, Bloomberg News reported Saturday, citing people familiar with the matter. Gold Fields is now weighing its next steps after the approach, according to the report.
A deal would deepen Gold Fields' exposure to Australia's gold assets. Northern Star has a market value of about A$31.5 billion ($22.1 billion), while Gold Fields is valued at about $35.7 billion, according to Bloomberg.
The approach comes as Northern Star faces pressure from activist investor Elliott Investment Management, which has criticized the miner's performance and urged it to consider a sale or asset divestments. Amid that pressure, Northern Star appointed a new chief executive in July.
Northern Star has also cut production guidance several times over the past year, with problems at its Kalgoorlie processing plant weighing on output.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
