South African miner Gold Fields Ltd. approached Australia’s largest gold producer, Northern Star Resources, about a potential takeover. Northern Star rebuffed the initial overture. Gold Fields is reportedly considering its next steps, leaving open the possibility of a future offer.
A deal would be significant for the global gold sector. Northern Star has a market value of approximately A$31.5 billion ($22.1 billion).
The approach comes as Northern Star faces pressure from activist investor Elliott Investment Management to review its strategy, including the possibility of a sale. Northern Star has also faced operational challenges and cut its production guidance over the past year.