Gold Fields’ $2.1 Billion Offer for Gold Road Rejected

Image Credit: Reuters

On Monday, South Africa’s Gold Fields (NYSE: GFI) announced that Australia’s Gold Road Resources Ltd (ASX: GOR) had rejected its non-binding takeover proposal, which valued Gold Road at A$3.3 billion ($2.1 billion).

Gold Fields had offered to acquire 100% of Gold Road’s shares at A$3.05 per share, consisting of a fixed cash amount and a variable component linked to Gold Road’s stake in De Grey Mining Ltd (ASX: DEG).

The proposed acquisition aimed to consolidate control over the Gruyere gold mine in Western Australia, where both Gold Fields and Gold Road are joint venture partners.

However, Gold Road’s board declined the offer and instead proposed buying Gold Fields’ 50% stake in Gruyere. Gold Fields rejected this alternative.

Despite the rejection, Gold Fields expressed its willingness to continue discussions.

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