JOHANNESBURG, Sept 26 – South African gold producer Gold Fields has approached Australia’s Northern Star Resources over a potential acquisition, according to Bloomberg News, citing people familiar with the matter.
The approach was recently made to Northern Star, Australia’s largest gold miner, but the company rejected the overtures, Bloomberg reported. Gold Fields is now considering its next steps following the response.
A transaction would expand Gold Fields’ exposure to Australia, one of the world’s major gold-producing markets, and would combine two significant gold producers with operations across multiple jurisdictions.
Northern Star has a market value of about A$31.5 billion ($22.1 billion), while Gold Fields is valued at approximately $35.7 billion, according to Bloomberg.
The approach comes as Northern Star faces pressure from activist investor Elliott Investment Management, which has called for changes at the company and urged consideration of a potential sale or the divestment of assets. Northern Star appointed a new chief executive in July as the pressure intensified.
Northern Star has also lowered its production guidance several times over the past year, with operational challenges at its Kalgoorlie processing plant contributing to weaker output.
For Gold Fields, a potential transaction would represent a significant expansion of its Australian footprint at a time when gold producers globally are seeking to strengthen reserves and production capacity.
