Northern Star and Saracen in $15b merger deal
Northern Star (NST ) +10.64%, Saracen (SAR) +9.58%
when there’s smoke rang true again today with rumours coming true - JV partners in the Super Pit mine are now looking to merge as Saracen folds into Northern Star. The deal would see Saracen shareholders receive 0.3763 NST share for each SAR share, along with a 3.8c special dividend to create a $16b market cap, top 10 global gold name on completion in February. While still pending final shareholder and court approval, the board has recommended the deal and the market seems to like on first run. It would create a gold miner with 19 million oz reserve, and a 49 million oz resource. The new company could realise up to $2b in synergies with a number of mines operating in close proximity as well as reduced management costs. It’s a pretty good deal if they can realize the plans presented today. The gold space is poised for an M&A super cycle with a number of cashed up miners as well as a strong gold price encouraging deals.
Saracen (SAR) Chart
