Harmony Gold Shares Plummet 10.42%, MAC Copper Stock Soars 17.34% on $1.03B Acquisition Offer

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Harmony Gold Shares Slide After $1.03B MAC Copper Deal Announcement

South Africa’s Harmony Gold Mining has moved forward with its plans to acquire MAC Copper in a cash transaction valued at $1.03 billion. Under the proposed agreement, Harmony’s Australian subsidiary will purchase 100% of the issued share capital of MAC Copper for $12.25 per share. The offer represents a 20.7% premium to MAC Copper’s latest closing price on the NYSE.

The announcement prompted contrasting reactions among investors. During Tuesday’s pre-bell trading session, Harmony Gold witnessed its US-listed shares plunge by 10.42%, down to $14.19 from Friday’s closing price of $15.84. The stock did not fare much better on the Johannesburg Stock Exchange, where it sank by 6.50%.

MAC Copper, on the other hand, enjoyed gains of 17.34% on the NYSE, with the share price reaching $12 earlier. Despite market reactions, Harmony Gold emphasized that its expertise in underground mining in South Africa would enhance operations at the CSA mine in Cobar, New South Wales, and that the acquisition would bring immediate returns. Last year, the mine’s copper output reached 41,000 metric tons.

MAC Copper’s board of directors has unanimously endorsed the deal, recommending shareholders cast their vote accordingly. As disclosed by the company, several major shareholders have already committed to backing the proposal.

This move follows Harmony’s prior acquisition of the Eva Copper Project in Queensland in 2022, which is expected to generate between 55,000 and 60,000 metric tons of copper annually starting in 2029.

The deal reflects a broader trend among South African miners, such as Gold Fields, which are pursuing international projects. Rising costs and difficulties surrounding geology at home have made overseas assets more attractive.