Northern Star and Saracen Sign $4.14B Merger Deal to Create World's Eighth Largest Gold Miner

SEATTLE (Scrap Monster): Australian Northern Star Resources will buy Saracen Mineral Holdings in a $4.14 merger deal that has been approved by both the parties. The merger will create the world’s eighth largest gold miner by market value. The market value of the merged entity is estimated at $11.5 billion.

According to the deal, Northern Star will own 64% of the combined entity, while the remaining 36% stake will be held by Saracen Holdings. The proposal will be formally approved by a shareholder meeting to be held in January next year. It must be noted that the two companies jointly operate Australia’s giant Super Pit.

The combined entity is expected to produce 2 million ounces of gold per year from fiscal 2027. In addition, it will deliver approximately A$2 billion in operational savings, said a joint statement by the miners.

The merged entity will focus on three production centres- Kalgoorlie in central Australia, Yandal in western Australia and Pogo mine in Alaska. The unified company is expected to optimize the Super Pit operations more efficiently. The combined entity will have over 19 Moz of reserves and 49 Moz of resources. The management has predicted between A$1.5 and A$2 billion of synergies in the next 10 years.

The merger is considered as one of the most logical and strategic transactions by the mining industry.

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