Pan American Silver (TSX: Easter, NYSE: PAAS) will be US $ 2.1 billion acquisition of closing MAG SILVER (TSX: MAG, NYSEAMERICAN: MAG) After receipt The final approval of the Federal Economic Competition Commission from Mexico, in which one of the largest transactions of the year is confirmed in the sector.
The approval paves the way for the all-cash-and-stock deal that will be completed on or around 4 September this year, the companies announced on Monday (August 25).
According to the conditions of the scheme, -shareholders or US $ 20.54 may be in cash per share or the standard consideration of US $ 0.0001 in cash plus 0.755 of a Pan -Marikan share for each share.
According to business requests, Pan American expects to spend around 60 million shares on MAG -shareholders when the deal closes, so that they have approximately 14 percent of the combined company on a fully diluted basis.
The transaction values is allowed at around US $ 2.1 billion, a premium of 21 percent to its final price and a premium from 27 percent to its 20-day volume-weighted average price for the NYSE American from 9 May, when the deal was announced.
For Pan American, one of the world’s largest primary silver producers, the price is the 44 percent joint-venture interest of Mag in the Juanice-Mine in the Fresnillo Silver Trend in Mexico.
The large-scale underground operation is one of the world’s highest primary silver mines, which in the first quarter of 2025 only produces 4.5 million our silver at an all-in sustainable costs of US $ 10.64 per ounce silver equivalent. Annual output this year is predicted between 14.7 million and 16.7 million ounces.
“This strategic acquisition continues Pan American as a leading America-oriented silver producer” May. “Our acquisition of Mag brings one of the best silver mines in the world in Pan American’s portfolio. Juanicipio is a large -scale, high -quality, cheap silver mine that will mean the exposure of Pan American to high margin silver.”
Steinmann added that the Deal Pan -American future growth opportunities offers Mag’s Exploration properties in Utah and Ontario.
Consolidation wave in silver
The bond between Pan American and Mag continues a consolidation trend that wipes the silver sector, with a stronger metal price and investors hunger to scale that sends a series of deals.
Recent transactions include First Majestic Silver’s (TSX: FR, NYSE: AG) US $ 970 million takeover of Gatos Silver, Coeur Mining’s (NYSE: CDE) US $ 1.7 billion acquisition Van Silvercrest Metals and Endeavor Silver’s (TSX: EDR, NYSE: EXK) US $ 145 million Purchase of Compañia Minera Kolpa in Peru.
Pan American has 10 mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina, and also has the Escobal Mine in Guatemala, currently on care and maintenance. For Mag, the deal marks the end of its run as an independent company, but gives its shareholders an interest in a considerably larger producer.
In addition to Juanicipio, the Deer trail project in Utah and the Larder project in the Abitibi region may promote in Ontario. Those characteristics will now shift under the control of Pan American.
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Publication of securities: I, Giann Liguid, has no direct investment interest in a company mentioned in this article.
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