Johannesburg — Shares in South Africa's Gold Fields fell sharply on Monday after Australia’s Northern Star Resources rejected an unsolicited takeover proposal valued at about $27.1 billion, adding pressure on the South African gold producer as it seeks to expand its international portfolio.
Northern Star, Australia's top gold producer, said its board had unanimously rejected the proposal from Gold Fields, arguing that the offer materially undervalued its assets and growth prospects.
Under the proposal, Northern Star shareholders would have received 0.3125 new Gold Fields shares plus A$7.25 in cash for each Northern Star share. The offer was initially valued at A$27 per Northern Star share, or about A$38.7 billion, based on Gold Fields’ share price on Sept. 11. However, the value had fallen to about A$25.19 per share based on Gold Fields’ closing price on Sept. 25.
Northern Star said the proposal would leave its shareholders with significant exposure to Gold Fields shares and cited what it described as a higher jurisdictional risk profile. The Australian miner also objected to conditions attached to the proposal, including a proposed period of exclusivity.
Gold Fields said it would continue seeking discussions with Northern Star's board, arguing that a combination would provide strategic and financial benefits. The deal would bring together major gold operations in Australia and strengthen Gold Fields’ position in one of the world's key gold-producing regions.
The proposal comes amid renewed consolidation in the global gold sector following a period of strong gold prices. Northern Star has also faced pressure from activist investor Elliott Investment Management, which has pushed for a strategic review of the Australian miner.
Both companies have significant operations in Western Australia. Northern Star operates the Kalgoorlie Consolidated Gold Mines, known as the Super Pit, while Gold Fields expanded its Australian presence through its acquisition of Gold Road Resources in 2025.
Source: Reuters
Reporters: Melanie Burton & Roshan Thomas
