Gold Fields approaches Northern Star over potential takeover, Bloomberg reports
South Africa's Gold Fields Ltd has reportedly approached Australian gold miner Northern Star Resources with a potential acquisition offer, according to Bloomberg News. However, Northern Star has reportedly rejected the overtures, the source cited anonymous sources familiar with the matter. The potential deal would increase Gold Fields' exposure to Australia's gold assets.
Northern Star's market value is estimated at A$31.5 billion ($22.1 billion), while Gold Fields is valued at approximately $35.7 billion, as reported by Bloomberg. The approach by Gold Fields comes amid pressure on Northern Star, which has been facing criticism from activist investor Elliott Investment Management. The activist investor has criticized Northern Star's performance and urged it to consider a sale or divestments.
Recently, Northern Star appointed a new CEO in July to address the pressure. The miner has also adjusted its production guidance multiple times over the past year due to issues at its Kalgoorlie processing plant, which have negatively impacted output.
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