What's Happening?
The Supreme Court of British Columbia has granted final approval for the acquisition of New Gold by Coeur Mining, a U.S.-based company, through a court-sanctioned plan of arrangement. This decision allows a subsidiary of Coeur to acquire all outstanding shares of New Gold, as outlined under the Business Corporations Act of British Columbia. The transaction, which still requires approval under the Investment Canada Act and other typical conditions, is expected to be finalized in the first half of 2026. According to the agreement, New Gold shareholders will receive 0.4959 shares of Coeur’s common stock for each share they hold, valuing each New Gold share at $8.51. This represents a 16% premium over New Gold’s closing price on October 31, 2025.
The deal assigns New Gold an equity value of approximately $7 billion, with the combined company expected to have a market capitalization of around $20 billion.
Why It's Important?
This acquisition is significant as it consolidates Coeur Mining's position in the mining sector, potentially increasing its market share and influence. The transaction is expected to result in a combined company with a market capitalization of approximately $20 billion, enhancing its competitive edge. The deal also offers a 16% premium to New Gold shareholders, indicating a favorable outcome for investors. With more than 80% of Coeur’s revenue expected to be generated from the U.S. and Canada, the acquisition strengthens its North American operations. The forecasted production of around 1.25 million gold equivalent ounces, including 20 million ounces of silver and 900,000 ounces of gold, positions the company to generate significant free cash flow.
What's Next?
The transaction still requires approval under the Investment Canada Act and other typical conditions before it can be finalized. Once completed, Coeur shareholders are expected to own around 62% of the new entity, while New Gold shareholders will hold the remaining 38%. The focus will likely shift to integrating operations and realizing synergies from the merger. Stakeholders will be watching closely to see how the combined entity performs in terms of production and financial metrics. The successful completion of this acquisition could set a precedent for future mergers and acquisitions in the mining industry.
