Gold Fields pursues takeover of Australia's top gold producer Northern Star

Gold Fields, the Johannesburg-listed gold miner, has signaled interest in acquiring Northern Star Resources, Australia’s largest gold producer, according to unnamed sources. Northern Star rebuffed the overture, leaving Gold Fields to weigh its next move. This approach comes after Gold Fields’ earlier acquisitions of Gold Road Resources in Western Australia and Canada’s Osisko Mining, which broadened its presence across Africa, Australia and the Americas.

Shares of Northern Star have slipped 17% this year, giving it a market value of $31.5 billion, while Gold Fields’ stock is down about 9% with a market cap of $35.7 billion. The deal interest coincides with a multi-year gold price rally that has spurred consolidation in the sector. Elliott Investment Management, a major activist shareholder, has publicly urged Northern Star to explore a sale or asset divestments and to overhaul its board. The company appointed a new chief executive in July as it struggles with production cuts and problems at its Kalgoorlie processing plant.