By Adriano Marchese


Gold Fields Ltd. has dropped its attempt to buy Yamana Gold Inc. and will receive $300 million as a termination fee.

Earlier on Tuesday morning, Yamana said that it entered into an arrangement agreement to be bought by Pan American Silver Corp. and sell certain subsidiaries and partnerships to Agnico Eagle Mines Ltd. in a cash and stock deal with a consideration value of $4.8 billion.

Gold Fields, a South Africa-based gold miner, said it continues to believe its offer was the superior offer but that ending the arrangement agreement is the best course of action.

It said that the termination fee will maximize shareholder value.

Gold Fields first proposed a deal to Yamana in June that valued the Canadian miner at $6.7 billion, offering a 34% premium to the volume-weighted price for Yamana at the time.

The Pan American-Agnico duo approached Yamana with a new bid in early November, offering $1 billion in cash contributed by Agnico Eagle and 36.1 million of its common shares, and 153.5 million common shares of Pan American.

Gold Fields waived its right-to-match the offer under its agreement with Yamana Gold, while Yamana's board determined that the Pan American-Agnico offer was the superior proposal instead.

Gold Fields said that it will use its existing portfolio as a base from which to consider future capital-allocation options.


Write to Adriano Marchese at adriano.marchese@wsj.com


(END) Dow Jones Newswires

11-08-22 1133ET