Australia’s Gold Road rejects $2.1B takeover bid from Africa’s Gold Fields

Australia’s Gold Road Resources has rejected a A$3.3 billion ($2.1bn) takeover bid from South Africa’s Gold Fields, calling the offer “highly opportunistic” and saying it undervalued the company.

Gold Fields, the Johannesburg-based miner, had offered A$3.05 per share, a 21% premium to Gold Road’s average share price over the past month. The deal would have given Gold Fields full control of the Gruyere joint venture mine in Western Australia.

Gold Road criticized Gold Fields’ decision to publicize the bid, arguing that it failed to recognize the value of a potential underground expansion at Gruyere. As an alternative, Gold Road proposed buying out Gold Fields’ 50% stake in the mine, but the company rejected the counteroffer.

 “Gold Fields is disappointed that the Gold Road board has not constructively engaged on key elements of the proposal, which would have allowed both parties to confidentially progress towards an outcome,” it said.

Gold Fields’ hostile bid also complicates Northern Star Resources’ A$5 billion ($3.5bn) deal to buy out smaller rival De Grey Mining as Gold Road holds a 17.3% stake in De Grey.

The Gruyere mine has produced more than 1.5 million ounces since kicking off operations in 2019. In the final three months of 2024, the operation recorded its highest-ever quarterly output at nearly 92,000 ounces.