Pan American Silver to snap up MAG Silver in $2.1bn deal
By Abigail Townsend
Date: Monday 12 May 2025
(Sharecast News) - Canada's Pan American Silver has agreed to acquire smaller rival MAG Silver in a $2.1bn deal, it was confirmed on Monday.
Under the terms of the cash and stock deal, which were struck late on Sunday, the gold and silver miner will acquire all of MAG, including its flagship 44% joint venture interest in the vast Juanicipio mine in Mexico, which is operated by majority-owner Fresnillo.
MAG shareholders will receive $20.54 per share.
The deal, which consists of $500m in cash and 0.755 Pan American shares for every one MAG share, values MAG at around $2.1bn.
Michael Steinmann, chief executive of Pan American, called Juanicipio "one of the best silver mines in the world".
He continued: "Juanicipio is a large-scale, high-grade, low-cost silver mine that will meaningfully increase Pan American's exposure to high-margin silver ounces.
"This strategic acquisition further solidifies Pan American as a leading Americas-focused silver producer."
George Paspalas, MAG chief executive, said the deal was a "compelling opportunity" for shareholders.
"Through the acquisition of our interest by Pan American, a respected leader in the global precious metals industry, our shareholders will participate in an exciting future defined by operational excellence, substantial exploration potential and strong financial stewardship."
The deal remains subject to regulatory clearance in Mexico but is expected to complete in the second half of 2025.
As at 1000 BST, Pan American's New York-listed shares were down 7% in pre-market trading, while MAG's were up 7%. In London, Fresnillo was down 5% at 1,012.34p.
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