Canadian miner Pan American Silver to acquire MAG Silver at valuation of about $2.1 billion

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(Reuters) - Canadian miner Pan American Silver will acquire MAG Silver Corp in a transaction which values the silver mining company at about $2.1 billion, the companies said on Sunday.

The deal will give Pan American Silver access to a 44% interest that MAG has in the tier-one Juanicipio silver mine in Mexico, which is operated by Fresnillo, which owns the remaining 56%.

The deal, unanimously approved by the boards of directors of both Pan American and MAG, is expected to close in the second half of 2025, the companies said in a statement.

As of the market close on Friday, Pan American Silver, a leading silver and gold mining company has a market capitalization of about $9.9 billion, while MAG Silver has a market capitalization of $1.7 billion, as per LSEG data.

Under the deal, MAG shareholders will receive $20.54 per share, consisting of $500 million in total cash and 0.755 Pan American shares per MAG share.

(Reporting by Chandni Shah in Bengaluru; Editing by Rashmi Aich and Mrigank Dhaniwala)